Anthony Pompliano, CEO of Professional Capital Management, said on Thursday that the more cash handouts President Donald Trump gives, the better it’d be for assets like Bitcoin (CRYPTO: BTC).
Pompliano is Bullish on BTC
Trump proposed $5,000 “Trump dividend” checks to every American adult citizen if Republicans win the November midterms. The proposal would cost roughly $1.2 trillion.
Pompliano argued that stimulus would boost inflation and the money supply, driving demand for scarce assets like Bitcoin, gold, and land as stores of value.
“The more money he hands out, the higher Bitcoin, gold, and land will go,” he added.
What Do Stats Say?
A 2022 study by Federal Reserve economists found that fiscal stimulus during the COVID-19 pandemic contributed to an increase in inflation of about 2.5 percentage points in the U.S.
A recent study published in the Chicago Booth Review, however, disputed this view, finding that stimulus programs accounted for less than one-fifth of the price increases during this period.
Another BTC Rally Incoming?
Bitcoin and the broader cryptocurrency market have a history of rallying after such announcements. Trump floated a $2,000 tariff dividend in November, sending BTC up 5%. The COVID stimulus checks had a similar impact.
As for Pompliano, he has repeatedly cast Bitcoin as a hedge against the debasement of the dollar.
Interestingly, he supports investing stimulus checks in Bitcoin, arguing that people need to shift from being consumers to becoming investors.
Price Action: At the time of writing, BTC was exchanging hands at $76,763.91, down 1.65% over the last 24 hours, according to data from Benzinga Pro.
Photo: IAB Studio / Shutterstock
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