US President Donald Trump proposed a $5,000 “dividend” payment to every adult American citizen if Republicans keep control of Congress after the midterm elections.

The country has around 245 million citizens aged 18 and above, making the program’s estimated cost a whopping $1.2 trillion. The idea sparked major controversy, with some X users claiming part of that sum could flow into the cryptocurrency market and potentially create a major altseason. It is also worth watching how this stimulus package could affect Bitcoin (BTC). Here’s what three of the most popular AI-powered chatbots said on the matter.

You can also check our dedicated video on the matter and much more.

Rise Sharply at First and Then?

According to ChatGPT, if Trump actually gives $5K to each adult American, BTC would probably experience a strong initial pump. OpenAI’s platform does not expect people to spend most of the stimulus to gain exposure to the primary cryptocurrency, but it noted that even if they distribute a small amount of that sum, they could still move the price up.

The chatbot also claimed the announcement alone could trigger huge speculation, as traders would probably “front-run the payments” by buying Bitcoin, altcoins, technology stocks, and other risk assets before the money reached bank accounts.

“BTC could therefore rally well before the actual distribution,” it predicted.

ChatGPT assumed that the real danger would come after the initial enthusiasm. If the program were financed through additional government borrowing and introduced while the economy is still struggling, it could lead to higher inflation and amendments to the Fed’s monetary policy.

“This creates two opposing forces for Bitcoin. Inflation and currency debasement strengthen its “digital gold” narrative, but higher yields and tighter monetary policy generally hurt speculative assets. Bitcoin might therefore surge initially, then experience a sharp correction if the bond market or Fed pushed back,” ChatGPT concluded.

Perplexity stated that such a decision would be “mildly bullish” for BTC in the short term but not “a standalone bull market trigger.” Like ChatGPT, it said the long-term effect would largely depend on the Federal Reserve’s actions and the overall condition of the American economy.

Like Last Time?

Google’s Gemini made an interesting comparison between Trump’s idea and the stimulus packages distributed to Americans during the COVID-19 pandemic. In 2020-2021, locals received several rounds of benefits to help them cover basic needs after the spread of the disease caused lockdowns and major unemployment.

The chatbot noted that back then, some people used part of the distributed cash to purchase BTC, which eventually triggered a bull run. Recall that the leading digital asset collapsed below $5,000 in March 2020, while approximately a year and a half later it skyrocketed to a new record of almost $70,000.

“A $5,000 payout per American would total $1.2 trillion – exceeding all three COVID checks combined. If passed, it would likely trigger an even more substantial rally for BTC than the one from 2021,” Gemini predicted.

Source: CryptoPotato