After nearly a week in decline, cryptocurrency prices have recorded impressive gains over the last day, triggered by plans of incoming stimulus checks to US residents. US President Donald Trump disclosed trillions of dollars as the gains from trade tariffs, pledging to distribute $2,000 to citizens.
Crypto Prices Surge As Market Capitalization Exceeds $3 Trillion
The prices of leading cryptocurrencies surged over the last day, with Bitcoin (BTC) and Ethereum (ETH) climbing by 2% and 4% respectively. According to data from CoinMarketCap, the largest cryptocurrency shook off fears of a steep drop below $100,000 to reach an intraday high of $105,005.
Meanwhile, ETH’s near 5% rally powered the largest altcoin to $3,500 after shedding over 7% in the last seven days. XRP, the fourth-largest cryptocurrency, surged by nearly 3% in a week while Solana (SOL) pulled in gains of 4.20% in the same time frame.
Data from the cryptocurrency price aggregator indicated similar upswings for Cardano (ADA) and Dogecoin (DOGE), with the assets gaining 3% respectively. Among the top 20 cryptocurrencies by market capitalization, Monero (XMR) raked in the largest daily gains at 16% to trade at $428, while Litecoin logged an impressive 9.17% in under a day.
Currently, the global cryptocurrency market capitalization stands at $3.52 trillion, with daily trading volumes exceeding $140 billion. Barely a month ago, the ecosystem recorded a sharp market-wide sell-off, triggered by cascading liquidations across trading platforms.
Trump’s Tariffs Powers New Crypto Rally
The sudden surge in cryptocurrency prices came on the heels of Donald Trump’s announcement to pay US citizens a tariff dividend of at least $2,000. In a Truth Social post, the US President noted that the country has gained “trillions of dollars” from trade tariffs amid several macroeconomic positives.
Armed with the capital injection from the year-long tariff wars, Trump announced that the government would soon begin issuing stimulus checks. However, Trump stated that the high-income individuals will be excluded from the tariff dividends, but a timeline for issuance remains under wraps.
“Record investment in the USA, plants and factories going up all over the place,” wrote Trump. “A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone.”
Back in 2021, the Biden administration doled out $1,200 to US households, triggering a surge in retail interest in cryptocurrencies. Pundits have averred that a similar stimulus injection will trigger a sustained rally, but critics are warning investors of the long-term inflationary risks.
Source: https://zycrypto.com/btc-eth-sol-xrp-bnb-primed-to-erupt-amid-trumps-2000-tariff-dividend/
