Bitcoin has had a challenging few days. After a significant correction of 21%, the largest cryptocurrency is recovering. From its all-time high of $126,200, it dropped on November 4th to $98,900, raising concerns about a longer consolidation period. However, over the past week, the market has stabilized, and according to TradingView data, Bitcoin has risen by 7%, regaining investor confidence.

At the time of writing, it is trading around $106,000, with increased buying volume observed following the announcement of new economic measures in the United States. These measures could have a significant impact on the further development of the crypto market, as economic stimulus often leads to increased activity by investors in risk assets, including Bitcoin.

Bitcoin reacts to Trump’s announcement of a “tariff dividend”

President Donald Trump stated via the Truth Social platform that most Americans will receive a $2,000 “dividend” funded by tariff revenues. According to him, this will be a one-time payment, excluding only high-income groups. This proposal immediately sparked extensive debate.

The US Supreme Court is currently reviewing the legality of these tariffs. Trump argues that the president has constitutional authority to restrict trade with foreign countries and, therefore, should have the right to impose tariffs for national security reasons.

Investors, however, perceive the proposal as a form of economic stimulus. According to analysts from The Kobeissi Letter, about 85% of adult Americans could receive the payment, which would temporarily strengthen the markets.

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BTC and markets face a wave of liquidity, but also inflation

When millions of Americans receive extra money, such as this $2,000 “dividend” contribution, most of them will not save it, but invest it. Many of these people buy stocks, cryptocurrencies, or other assets that can yield a profit. This increases demand and thus drives prices higher.

Since many Americans may invest part of the new funds, interest in cryptocurrencies like Bitcoin rises. This increased demand pushes the price up, and buyers can easily purchase it on platforms such as Binance, which offers secure market access.

Bitcoin reacts very sensitively to such stimuli, as investors see it as protection against inflation. Experts agree that the short-term rise will have its cost. These payments will increase the national debt and eventually lead to higher inflation. Economic support may temporarily strengthen Bitcoin but will increase long-term pressure on the US dollar.

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