Arthur Hayes, co-founder of BitMEX, asserts that while US President Donald Trump’s tariffs may disturb the global economy in various ways, this disruption could be just the catalyst Bitcoin needs to surge.
“Global imbalances will be addressed, and the distress masked with printed money, which bodes well for BTC,” Hayes remarked in an X post dated April 3.
Multiple factors may drive Bitcoin’s potential surge
“Some of y’all might be feeling apprehensive, but I AM A FAN OF TARIFFS,” Hayes stated.
His remarks follow the announcement that starting April 5, the Trump administration will implement a 10% tariff across all countries, with certain nations facing even heftier tariffs—China at 34%, the European Union at 20%, and Japan at 24%.
Hayes clarified that tariffs can positively influence Bitcoin’s (BTC) price for several reasons.
As of publication, Bitcoin trades at $83,150. Source: CoinMarketCap
One reason he mentioned is the “weakening” of the US Dollar Index (DXY), as foreign investors continue to divest from US stocks and “repatriate funds.”
April 3 saw “the largest single-day point loss for the Nasdaq 100 ever,” according to trading resource The Kobeissi Letter.
“The index plummeted by -1060 points, coming within 1.5% of triggering its first circuit breaker since March 2020,” The Kobeissi Letter reported.
“This is beneficial for BTC and gold in the medium term.”
Hayes also indicated that the stringent tariffs on China could lead to a decline in the yuan (CNY). “With a 65% effective tariff in place, China might allow the CNY to weaken beyond 8.00,” Hayes noted.
A depreciating yuan could prompt Chinese investors to explore riskier assets like Bitcoin as a means of wealth preservation.
Moreover, Hayes emphasized that “we need Fed easing,” pointing out that the two-year Treasury yield “plummeted” after the tariff announcement.
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He elaborated that this decline signals market expectations for the Federal Reserve to lower rates and possibly resume quantitative easing (QE) to mitigate the adverse economic effects.
Rate cuts by the Fed enhance liquidity, thereby making riskier assets such as cryptocurrencies more appealing to investors.
Source: Arthur Hayes
Additionally, Jeff Park, head of alpha strategies at Bitwise Invest, has consistently argued that Trump’s tariffs will ultimately favor Bitcoin.
On February 3, he stated that in a “climate of a weakened dollar and reduced US rates… risk assets in the US are poised to soar beyond your wildest dreams.”
“Save this statement for future reference as the financial conflict unfolds, propelling Bitcoin upwards dramatically,” Park advised on February 3.
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This article does not constitute investment advice or recommendations. All investments and trading activities carry risks, and readers should perform their own research before making any decisions.
