The recent announcement of President Donald Trump regarding a possible distribution of the revenues accrued from tariffs to American taxpayers has sparked talks about a possible financial bull run, including the crypto market, from financial analysts.
On Thursday, during an interview with One America News Network, Trump declared that while most of these funds would be used to pay debt, part of it would be given to the American people.
“We’re thinking maybe $1,000 to $2,000 — it would be great,” he assessed, highlighting that tariff revenue would reach “over $1 trillion a year” in its final form.
Even when it is not confirmed yet, analysts from Bitfinex, a cryptocurrency exchange, believe that this announcement itself might further contribute to a rise in crypto prices. Talking to Forbes, they stated:
We suspect that Trump’s announcement of potentially considering a stimulus check for every citizen, funded by tariffs, could also contribute to a further rise in bitcoin’s price.
“This could mirror what we witnessed following the COVID stimulus checks,” they added.
Peter Zimmerman, a researcher at the Federal Reserve Bank of Cleveland, estimated that the COVID stimulus had a modest effect on the price of bitcoin, increasing trade volume by about 3.8% and a price increase of 0.07%.
Nonetheless, the evolution of the bitcoin-linked investment product offering might amplify the effect of a similar fund injection this time. The relevance and growth of BTC as a mainstream asset could also put it in the sights of retail investors who would have ignored it before.
While bitcoin broke record prices recently, bulldozing the $126K mark, ignoring the federal government shutdown, and setting itself as a safe haven asset, institutional demand and the current momentum indicate that the run still has legs to grow.
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