Discussion of Stimulus Policies Meets Government Shutdown: What Tariff Subsidy Checks Mean for Cryptocurrency

CN
5 hours ago

Former U.S. President Donald Trump proposed the idea of launching another round of stimulus plans using revenue from import tariffs, which could bring potential benefits to the cryptocurrency market, while the government shutdown continues.

According to an interview released by One America News Network on Thursday, Trump stated that he is considering issuing stimulus checks of up to $2,000 to Americans, funded by import tariff revenue.

In the interview, Trump mentioned that while tariff revenue has "only just begun to take effect," it will ultimately generate "over $1 trillion annually," adding that another portion of the revenue will be used to pay down the nation's $37 trillion federal debt.

The proposed "dividend" plan would allocate $1,000 to $2,000 to each individual, pending congressional approval.

According to data from the Treasury Department reviewed by Fox Business, the U.S. government has collected approximately $214 billion in tariff revenue so far in 2025.

Combined with the uncertainty of the ongoing government shutdown, the potential stimulus plan could serve as another catalyst for the cryptocurrency market, similar to the market cycle in 2020.

According to analysts at the Bitfinex exchange, this development could become an "additional liquidity catalyst," pointing to a similar situation where COVID-19 stimulus checks brought new retail investor liquidity, catalyzing the rebound of Bitcoin (BTC) during the pandemic.

Analysts wrote in a research report released on Tuesday: "Similar dynamics emerged after the COVID era stimulus policies, injecting significant liquidity into both traditional and digital markets, driving the explosive rebound of Bitcoin at that time."

In March 2020, Trump signed a $2 trillion stimulus plan to address the economic impact of the pandemic, distributing up to $1,200 to eligible individuals with adjusted gross incomes not exceeding $75,000.

Bitcoin's price surged over 1,050%, rising from $6,000 in March 2020 to $69,000 in November 2021. However, this rebound coincided with a period of quantitative easing (QE), as the Federal Reserve announced a $4 trillion bond-buying program on March 23, 2020.

QE refers to central banks purchasing bonds and injecting funds into the economy to lower interest rates and stimulate spending during difficult financial conditions.

Meanwhile, the U.S. government shutdown entered its seventh day on Tuesday, with lawmakers failing to pass a key bill to maintain government funding.

The Senate is scheduled to reconvene later on Tuesday to discuss the funding bill, with no clear solution in sight after both sides failed to reach an agreement for the fifth time on Monday.

On the prediction market platform Polymarket, traders believe there is a 68% chance that the shutdown will end on or after October 15.

Related: Dubai's Virtual Assets Regulatory Authority (VARA) fines 19 unlicensed crypto companies

Original article: “Stimulus Policy Discussion Meets Government Shutdown: What Tariff-Funded Checks Mean for Crypto”

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