Attention Bitcoin (BTC) Bulls, Trump's Tariff Dividend Might Skip Direct Stimulus Checks
Treasury Secretary Bessent clarified that Trump's proposed tariff dividend may come as tax cuts rather than direct stimulus checks, potentially dampening crypto enthusiasm.Summary
The cryptocurrency market experienced a rally based on speculation that President Trump's announced tariff dividend for low-income Americans would arrive as direct stimulus checks, similar to COVID-era payments that fueled prior crypto surges. However, Treasury Secretary Scott Bessent later clarified that the $2,000 dividend could be delivered through indirect measures within the administration's economic policy, such as tax cuts on tips, overtime, and Social Security, or deductibility on auto loans.
Bessent's clarification suggests the benefit might not provide the immediate, tangible cash inflow that direct checks offer, which typically causes rapid market boosts. This distinction led to a stall in the rally that saw Bitcoin rise from $103,000 to over $106,500, and altcoins like XRP and UNI gain significantly.
Furthermore, the article notes that current economic conditions—with interest rates around 4% and inflation above the Fed's target—differ significantly from 2021, making direct comparisons to past rallies less relevant. This raises questions about whether recipients, even with tax cuts, would channel funds into crypto trading or opt to save the benefits.
(Source：CoinDesk)