Bitcoin, Altcoins Climb After Trump Vows $2,000 Tariff Dividend Per Citizen

Crypto Prices Rebound as Trump Pledges ‘At Least’ $2K Tariff Dividend for Americans

Bitcoin tops $105K; CoinDesk 20 index trims weekly losses after sharp drawdown

Cryptocurrencies climbed on Monday after U.S. President Donald Trump announced plans for a direct tariff dividend of “at least” $2,000 for most Americans—a proposal that reignited risk appetite across digital asset markets.

In a Truth Social post, Trump said the U.S. is generating “trillions of dollars” in tariff revenue and that the funds would help reduce the country’s $37 trillion national debt while also financing the dividend payments.

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

The announcement sparked a mild rebound in crypto markets, with Bitcoin (BTC) rising 1.93% over the past 24 hours to trade above $105,000. Ether (ETH) surged 4.75% to $3,526, while Solana (SOL) advanced 2.49% to $165. The CoinDesk 20 (CD20) index gained over 1.5%, recovering part of its 15% weekly decline.

Despite Monday’s uptick, the broader crypto market remains under pressure. Bitcoin is still down 5.7% for the week, while ETH has fallen 7.5%. Traders, however, appear to be pricing in the potential for stronger consumer spending—and possibly higher crypto inflows—if the proposed payments materialize.

Reality Check: Congressional Hurdles and Funding Gaps

Analysts were quick to note that Trump’s “tariff dividend” plan faces significant legislative and fiscal challenges. The President cannot unilaterally authorize or distribute such payments, as federal spending requires approval from Congress.

“Any plan to allocate funds collected from tariffs must go through the legislative process,” said Andy Constan, CEO and CIO of Damped Spring Advisors, on X.

Tax and budget experts also cast doubt on the math behind the proposal. According to Erica York, vice president of Federal Tax Policy at the Tax Foundation, the revenues generated from tariffs fall well short of the estimated cost of the dividend program.

“If the cutoff is $100,000 in income, about 150 million adults would qualify—costing roughly $300 billion. If children are included, that figure climbs higher. The problem is that new tariffs have raised only about $120 billion so far,” York wrote.

She further noted that, once the broader economic impact of tariffs is accounted for, each dollar in tariff revenue effectively offsets roughly 24 cents in income and payroll tax collections. This means the net tariff revenue stands closer to $90 billion, far below what would be needed to fund the proposed payments.

Bottom Line

Trump’s announcement injected fresh optimism into a market that had endured a week-long sell-off, but the policy’s feasibility remains uncertain. Unless Congress acts quickly—and tariff revenues grow dramatically—the proposed $2,000 “tariff dividend” may prove more symbolic than immediate.

Still, with crypto markets deeply oversold and macro sentiment turning cautiously optimistic, traders appear willing to chase the bounce—at least for now.