The prices of Bitcoin and other cryptocurrencies have declined as fears of inflation, alongside U.S. President Donald Trump’s tariff threats, continue to impact the market. Additionally, there are new concerns regarding a mysterious hack that may also be affecting bitcoin prices.
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The bitcoin price has retraced to approximately $80,000 after reaching nearly $90,000 earlier this week, despite the announcement of a significant development in the bitcoin space.
As bitcoin begins to outperform Elon Musk’s Tesla, esteemed crypto trader Arthur Hayes is forecasting that the Federal Reserve will spark a bitcoin value surge come April.
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Federal Reserve Chair Jerome Powell may be about to initiate a bitcoin price and crypto market … More
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According to Hayes, co-founder of crypto derivatives pioneer BitMex and founder of the Maelstrom investment company, “a significant shift in tone was evident from [Federal Reserve Chair Jerome Powell] at the last Fed board meeting,” he told podcaster Kyle Chasse.
Hayes, who recently received a pardon from U.S. President Donald Trump along with fellow BitMex founders Benjamin Delo and Samuel Reed for violations related to the Bank Secrecy Act, suspects that the Fed is hinting at a return to “stealth” money printing, known as quantitative easing, despite managing a $36 trillion U.S. debt burden that has ballooned since 2020.
He noted Powell’s statements during the latest Fed press conference indicating that “inflationary aspects of tariffs are temporary.”
“As crypto investors, we shouldn’t worry about tariffs anymore, and neither does Powell,” Hayes stated. “Whether Trump implements a 50% tariff or just 2%, it’s irrelevant because we know Powell intends to maintain the easy monetary conditions necessary for our portfolios to thrive in fiat terms.”
New tariffs proposed by Trump, which have unsettled the bitcoin price and affected crypto and stock markets, are scheduled to impact goods from Canada, Mexico, and China starting April 2.
Meanwhile, according to 10x Research founder Markus Thielen, the bitcoin price is poised for a rebound towards $90,000. He believes that Trump’s potential easing of tariffs combined with a more accommodating Fed policy sets the stage for a bitcoin recovery.
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The bitcoin price has surged in recent years, with predictions of a Federal Reserve shift likely to elevate … More
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Thielen observed, “Bitcoin is working to establish a bottom, buoyed by Trump’s recent move towards ‘flexibility’ regarding the April 2 tariffs, softening his earlier stance.”
He highlighted Fed Chair Powell’s indication that the Fed aims to “overlook short-term inflationary pressures, laying the groundwork for possible future easing.”
“Powell’s slightly dovish stance implies that the Fed’s safety net is still in play, providing additional support for a rebound in stock prices.”
