The prices of Bitcoin and other cryptocurrencies have experienced a notable increase, rising despite concerns over potential “price suppression” and a serious warning issued by JPMorgan.
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The price of Bitcoin has rallied towards the $100,000 mark, recovering from a dip to just above $90,000, a situation that some analysts believe may signal serious warning signs for the stock market.
Recently, Elon Musk was presented with a proposal for a Bitcoin “fix” concerning the questions around the U.S. gold reserves. Musk has revealed that former U.S. President Donald Trump endorses the idea of issuing “Doge dividend” checks to taxpayers, which could potentially drive up the price of Bitcoin.
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President Donald Trump has informed Elon Musk of his support for the proposal of a doge dividend … [+]
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Musk, who is spearheading the Doge department of government efficiency, mentioned to the Conservative Political Action Conference (CPAC), “I spoke with the president, and he supports [the idea].”
He added, “It looks like this is something we are planning to do.” Earlier this week, Trump mentioned he is contemplating a “new concept” where 20% of the Doge savings would be returned to American citizens while the other 20% would go towards reducing the national debt.
After Trump returned to the White House, Musk utilized the idea of distributing Doge dividend checks to taxpayers, inspired by a proposal from investor James Fishback on X. Fishback suggested, “President Trump and Elon Musk should unveil a ‘Doge dividend’ — a tax refund sent to every taxpayer funded entirely by the total savings generated through Doge,” which could potentially deliver $5,000 to households if Doge manages to achieve its ambitious goal of trimming $2 trillion from government expenses.
“If you had invested your $1,200 stimulus check in Bitcoin on April 15, 2020, it would be valued at about $17,315 today, February 20, 2025,” YouTuber Ryan Matta noted on X. “This represents a staggering increase of roughly 1,343%. What will you do with your initial $5,000 Doge check?”
In the years 2020 and 2021, the economic infusion from government stimulus checks contributed to skyrocketing U.S. debt and propelled inflation to heights not seen in decades, as many utilized the funds to invest in Bitcoin and other cryptocurrencies that soared to record prices.
Nonetheless, the potential impact of Doge checks—or a doge dividend—on Bitcoin prices and the crypto market may not parallel the previous stimulus checks’ effects in 2020.
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Bitcoin has resumed its upward trend, moving closer to the $100,000 benchmark as Elon Musk and … [+]
Forbes Digital Assets
According to Mati Greenspan, CEO of Quantum Economics, “The current market dynamics differ significantly from the last round of government stimulus checks.”
“Before hyperinflation, many individuals were financially comfortable, and any extra cash became disposable income, prompting them to invest in Bitcoin as a hedge against impending inflation. Nowadays, many are struggling to make ends meet, and any additional income will likely go toward covering monthly expenses and purchasing essentials,” Greenspan explained.
While Greenspan anticipates that some recipients will channel their Doge checks into Bitcoin or other cryptocurrencies, he noted that due to the influx of institutional investment in the cryptocurrency market over recent years, such contributions would likely have a minimized effect.
“Some will surely invest or even use it for gambling, but it’s unlikely to be substantial enough to influence prices in a market increasingly ruled by substantial institutional capital,” Greenspan remarked, adding that he would prefer to invest his Doge dividend into dogecoin—the meme coin that inspired Musk’s government efficiency department.
“Personally, if I receive a Doge check, I’ll be investing it in dogecoin—the only meme coin that has gained traction within the U.S. government and is driving positive change.”
