Update as of 03/30: This article was initially published on March 29.
Bitcoin and cryptocurrency values have retreated due to ongoing concerns about inflation and U.S. President Donald Trump’s tariff threats, along with new anxieties surrounding an undisclosed hack.
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The price of Bitcoin has slid back closer to $80,000 after briefly approaching $90,000 earlier this week, despite the announcement of a significant bitcoin advancement.
As Bitcoin demonstrates stronger performance than Elon Musk’s Tesla, renowned crypto trader Arthur Hayes predicts that the Federal Reserve could ignite a Bitcoin price surge in April.
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Federal Reserve Chair Jerome Powell might be on the verge of instigating Bitcoin price and crypto market … More
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“There was a notable shift in [Federal Reserve Chair Jerome Powell’s] demeanor at the latest Fed board meeting,” Hayes, co-founder of the crypto derivatives platform BitMex and founder of the Maelstrom investment firm, told podcaster Kyle Chasse.
This month, the Fed’s rate-setting Federal Open Market Committee (FOMC) maintained interest rates after initiating a rate cuts cycle in September.
As of 03/30: Federal Reserve Chair Jerome Powell, who has had disagreements with President Donald Trump regarding the pace of interest rate reductions, faces the possibility of being dismissed, as warned by an influential Democratic Senator.
“No one’s position is secure, not even the Federal Reserve chairman,” stated Massachusetts Senator Elizabeth Warren to Bloomberg. “If [Trump] can still bypass every civil servant and dismantle agencies like the Consumer Financial Protection Bureau, it represents a form of lawlessness where all authority lies with a single ruler.”
Warren’s caution comes as Trump, supported by Tesla billionaire Elon Musk who is heading the Doge department of governmental efficiency, has systematically dismantled agencies and departments within just two months of returning to the White House.
Fed Chair Powell, appointed by Trump during his first term, advocates a cautious approach towards lowering rates, which have remained high since post-Covid stimulus and lockdowns drove inflation upward.
Conversely, Trump insists on immediate rate cuts, arguing that lower rates would facilitate his broader strategy for international trade tariffs.
“The Fed would substantially benefit from cutting rates as U.S. tariffs begin to stabilize and ease their way into the economy,” Trump posted on his Truth Social account last week, urging Powell and the Fed to, “do the right thing.”
The FOMC has revised its projections for economic growth downward while raising its inflation forecast and further tapering its quantitative tightening program, whereby it gradually reduces the bonds on its balance sheet.
Hayes, who recently received a pardon alongside BitMex co-founders Benjamin Delo and Samuel Reed for violations of the Bank Secrecy Act under President Trump, theorizes that the Fed is “hinting” at a return to “stealth” money printing, also known as quantitative easing, despite the challenges posed by the soaring $36 trillion U.S. debt since 2020.
Hayes cited Powell’s remarks at the latest Fed press conference, indicating that “the inflationary impacts of tariffs are temporary.”
“Tariffs are becoming irrelevant to Powell, and they shouldn’t concern crypto investors,” asserted Hayes. “Whether Trump imposes a 50% tariff or just 2%, it’s inconsequential because Powell will continue to maintain the favorable monetary conditions required for our portfolios to appreciate in fiat terms.”
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In recent years, the price of Bitcoin has surged, with predictions that Fed policy changes could drive … More
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Trump’s latest tariffs, which have unsettled the Bitcoin price as well as the crypto and stock markets, are set to take effect on goods from Canada, Mexico, and China starting April 2.
Meanwhile, according to 10x Research founder Markus Thielen, Bitcoin could be on the brink of a rebound toward $90,000, as he predicts that a combination of Trump’s easing stance on tariffs and a more accommodating Federal Reserve is positioning Bitcoin for a revival.
“Bitcoin is working on establishing a bottom, bolstered by Trump’s recent inclination towards ‘flexibility’ on the upcoming April 2 reciprocal tariffs, moderating his previous statements,” Thielen noted in an email.
Thielen also referenced Fed Chair Powell’s indication that it would “overlook short-term inflation pressures, setting the stage for potential future easing,” he added.
“Powell’s slightly dovish stance suggests that the Fed’s support remains intact, further fostering conditions for stock price recovery.”
