Crypto Rallies as Trump’s $2K ‘Tariff Dividend’ Sparks Risk-On Sentiment

Bitcoin and major cryptocurrencies extended gains on Monday after U.S. President Donald Trump unveiled a proposed $2,000 “tariff dividend” for every American, funded by import duties.

Announced on Truth Social, the plan reignited market optimism reminiscent of the pandemic-era stimulus, even as analysts questioned its feasibility and potential inflationary impact. Trump’s post declared, “A dividend of at least $2000 a person (not including high-income people!) will be paid to everyone,” while labeling opponents of tariffs as “FOOLS!”

Although unlikely to pass without congressional approval, markets interpreted the proposal as a signal of potential fiscal loosening, triggering a classic risk-on reaction in digital assets.

Bitcoin (BTC) climbed 4.6% to $106,440, while Ether (ETH) rose 6.1% to $3,618. XRP surged 8.5% to $2.48, and Solana (SOL) gained 6.1% to $167.96, pushing overall crypto market capitalization to roughly $3.5 trillion with $113 billion in 24-hour trading volume.

XRP’s outperformance coincided with Canary Capital’s third pre-effective S-1 amendment for its proposed XRP ETF (ticker: XRPC), set to list on Nasdaq and hold XRP with Gemini and BitGo.

Whether the “tariff dividend” becomes law or remains a campaign talking point, traders appear ready to front-run the liquidity narrative, fueling further gains in crypto markets.