Trump Announcement Briefly Boosts Bitcoin, Then Cools

Bitcoin briefly surged following a statement by former U.S. President Donald Trump regarding potential payments to Americans. Trump, on Truth Social, announced plans to distribute $2,000 per person using revenue from tariffs. This announcement initially propelled cryptocurrencies upward, lifting Bitcoin from $102,000 to above $104,000.

However, Treasury Under Secretary for Domestic Finance Scott Bessent cautioned against immediate expectations. In an ABC News interview, Bessent indicated the planned disbursement might not be a direct cash payment. He suggested it could take the form of tax breaks, such as those related to tips and overtime pay.

Bessent added that he had not yet spoken with Trump about the proposal. The remarks triggered a sell-off in the cryptocurrency market. Bitcoin subsequently retreated from $104,000 to as low as $102,900.

As of 15:15, Bitcoin was trading at $103,585.

Despite Bessent’s cautious statement, Trump’s initial post generated a palpable sense of optimism in the markets. Analysts speculate a dynamic similar to the 2021 meme stock rally could emerge.

The form of payment and the implementation timeline remain uncertain. Bessent’s comments tempered initial enthusiasm, emphasizing the need for careful consideration of the proposal’s details. The potential for a broader impact on cryptocurrency markets remains a subject of observation.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.