Bitcoin's price held steady between $77,650 and $78,000 on Thursday, showing little reaction to President Donald Trump's proposal for $5,000 dividend checks to American adults if Republicans retain control of Congress in the midterm elections.
At 8:25 a.m. EST, bitcoin traded at $77,719 per unit as investors appeared to prioritize economic data over political announcements. Market data showed the cryptocurrency had remained in the $77,500 to $78,500 range since the afternoon of September 9, with occasional dips below the $78,000 support level.
Inflation Data Takes Center Stage
Traders appeared focused on upcoming U.S. economic indicators rather than Trump's proposal. The U.S. Bureau of Labor Statistics released August PPI data on September 10, followed by CPI data on September 11. The combined reports were expected to signal the Federal Reserve's stance at its upcoming policy meeting.
Producer prices came in hotter than expected, with the PPI climbing to 5.4%, landing above forecasts and signaling that inflationary pressure at the wholesale level remained persistent.
Trump's Dividend Proposal
Speaking at a Republican midterm convention, Trump suggested the dividend checks would be sent to Americans if the GOP retained control of both houses of Congress. No funding details were provided by the administration. Critics warned that such a program would likely cost more than $1 trillion and could worsen the $1.8 trillion annual budget deficit.
Vice President JD Vance later clarified that the payments would not extend to wealthy Americans and suggested tariff revenues could fund the initiative.
Market Context
While stimulus payments had moved bitcoin during the pandemic era, today's market operates under different macroeconomic conditions. A $40 trillion U.S. national debt and energy price pressures create a more complex backdrop. Bitcoin's muted price action following Trump's announcement reflects how the asset has evolved beyond its earlier status as a niche speculative play, with retail stimulus hype no longer driving significant price movements as it did during the pandemic period.
