Will Crypto See Another 2020-Style Boom?

President Donald Trump is considering a new round of stimulus checks targeting low-income Americans, according to unconfirmed reports.

The unconfirmed reports say that the proposal is under review as part of broader economic support plans. Though still a rumor, the move might mirror pandemic-era relief policies that injected billions into American households.

What Are Stimulus Checks?

Stimulus checks are direct cash payments from the federal government to eligible citizens. They aim to boost spending and reduce financial stress during economic downturns or emergencies.

In 2020, under the CARES Act, individuals received $1,200, while joint filers got $2,400. The government followed up with additional rounds in December 2020 and March 2021.

Trump’s name was printed on the memo line of the first batch, drawing criticism for politicizing aid.

However, the payments helped millions cover essentials—and many others turned to investing.

Stimulus Checks and the 2020 Crypto Boom

A significant portion of recipients used their stimulus checks to buy cryptocurrencies, especially Bitcoin.

Data from Coinbase and Binance at the time showed a spike in $1,200 BTC purchases within days of the disbursements.

Retail investors flooded into crypto markets, helping drive Bitcoin from around $7,000 in April 2020 to over $60,000 by April 2021.

Altcoins like Ethereum, Dogecoin, and Uniswap also saw parabolic growth in the months that followed.

Stimulus-fueled buying coincided with the rise of Robinhood traders, NFT speculation, and the first wave of DeFi expansion. It was a retail-driven phase that brought millions into digital assets.

Potential Impact on Crypto in 2025

If a new round of checks is approved, crypto markets could see renewed retail activity. This comes as institutional flows into Bitcoin ETFs have slowed in recent weeks, leaving room for consumer sentiment to move prices.

Unlike 2020, the crypto space in 2025 includes more onramps, tokenized assets, and mobile-first investing tools.

So, this makes it easier for users to convert stimulus cash into digital assets, especially stablecoins and trending tokens.