Crypto Markets Edge Higher as Trump Floats $2,000 ‘Tariff Dividend’ for Americans

Cryptocurrencies rebounded on Sunday after a difficult week, as traders reacted to U.S. President Donald Trump’s announcement of a proposed “tariff dividend” that could see most Americans receive direct payments of at least $2,000.

In a post on Truth Social, Trump said the U.S. is collecting “trillions of dollars” from tariffs and plans to use the proceeds both to reduce the $37 trillion national debt and fund a direct payout to citizens.

“A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone,” Trump wrote.

The statement gave a modest boost to risk sentiment across digital assets. Bitcoin (BTC) climbed 1.9% in the past 24 hours, trading above $105,000, while Ether (ETH) rose 4.8% to reclaim $3,500. Solana (SOL) advanced 2.5% to top $160, and the CoinDesk 20 Index (CD20) gained 1.5%.

The uptick follows a week of steep losses, with the CD20 falling nearly 15% before stabilizing. Bitcoin remains down 5.7% for the week, while Ether has dropped 7.5%.

Analysts say traders may be positioning for potential increases in household liquidity and risk appetite if such payments materialize — though the timing and feasibility of the plan remain uncertain.

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Questions Over Feasibility

Despite the market enthusiasm, policy experts quickly noted that the president cannot unilaterally authorize such payments. Federal spending measures must pass through Congress, which would need to approve any plan to distribute tariff revenue.

Andy Constan, CEO and CIO of Damped Spring Advisors, emphasized on X that any “tariff dividend” would require legislative backing and appropriation. Given ongoing legal disputes and political debate around Trump’s tariff policies, swift action appears unlikely.

Moreover, budget analysts say the numbers don’t yet add up. Erica York, vice president of federal tax policy at the Tax Foundation, estimated that if adults earning under $100,000 were eligible, the program would cost roughly $300 billion — far more than the $120 billion raised from tariffs to date.

York further noted that once the broader economic effects are accounted for, net tariff revenue falls closer to $90 billion, leaving a significant shortfall to fund the proposed payments.

“The financial picture becomes much less favorable once you account for the offsetting impact of tariffs on taxable income,” York said.

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Market Outlook

While Trump’s comments injected short-term optimism into crypto markets, the lack of policy clarity means traders may remain cautious in the days ahead.

Still, the prospect of a large-scale fiscal stimulus — even if delayed or scaled back — has revived risk-on sentiment, providing a temporary lift to both digital assets and equities following last week’s deep correction.