Cryptocurrency prices are rising on Nov. 10 after U.S. President Donald Trump promised that a “tariff dividend” of at least $2,000 U.S. will be paid to every American citizen.
Taking to social media, Trump said the U.S. is generating “trillions of dollars” in tariff revenue and said the funds would both reduce the country’s $37 trillion U.S. national debt and finance the upcoming dividend payment.
“A dividend of at least $2,000 a person (not including high income people!) will be paid to everyone,” Trump wrote in a social media post.
News of the tariff dividend has revived memories of the government payments made to American citizens during the Covid-19 pandemic in 2020 and 2021.
Many people used Covid-19 stimulus payments to invest in the stock market and cryptocurrencies, driving a bull market in equities and digital assets.
Bitcoin (BTC) is up 2% on news of the tariff dividend and trading at $106,500 U.S. The largest cryptocurrency by market capitalization had fallen below $100,000 U.S. in the last week.
Ethereum (ETH) is up 5% on news of the dividend and again trading above $3,500 U.S. per token.
The sudden reversal of fortune for crypto suggests that markets are pricing in the potential for higher consumer spending and crypto market inflows if and when the tariff dividend is paid.
Trump’s promise of a tariff dividend comes as the U.S. Supreme Court considers whether the president’s tariffs are lawful.
