- Bitmex co-founder Arthur Hayes believes Trump’s new tariffs could create economic conditions favorable for Bitcoin‘s growth.
- Hayes suggests tariffs may weaken the US dollar and force the Federal Reserve to cut interest rates, making Bitcoin more attractive to investors.
- Market observers noted significant stock sell-offs following the tariff announcement, with the Nasdaq experiencing its largest single-day point loss in history.
Arthur Hayes, co-founder of BitMEX, has expressed optimism that newly announced tariffs from the Trump administration could create ideal conditions for Bitcoin Price growth. In an April 3 post on X (formerly Twitter), Hayes stated that global economic disruptions caused by these tariffs would likely be addressed with monetary policy that benefits cryptocurrency markets, writing: "Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC."
The comments came after the Trump administration announced sweeping tariffs set to begin April 5, with a base rate of 10% for all countries and higher rates targeting specific nations – China (34%), the European Union (20%), and Japan (24%).
Why Tariffs Might Boost Bitcoin
Hayes outlined several reasons why these tariffs could positively impact Bitcoin prices. He pointed to the weakening of the US Dollar Index as overseas investors sell US stocks to "bring money home." This market reaction was evident on April 3, which The Kobeissi Letter described as "the largest single-day point loss for the Nasdaq 100 in history," with the index dropping 1,060 points and nearly triggering circuit breakers.
The potential weakening of China’s yuan represents another factor. Hayes suggested that with the effective 65% tariff against China, the Chinese government might allow its currency to weaken past 8.00, potentially driving Chinese investors toward Bitcoin as a wealth preservation tool.
Federal Reserve Response Could Amplify Effect
Hayes also highlighted market indicators suggesting the Federal Reserve might need to cut interest rates and possibly restart quantitative easing to counteract negative economic impacts from the tariffs. He noted that the two-year Treasury yield "dumped" following the tariff announcement, indicating market expectations for monetary easing.
Jeff Park from Bitwise Invest has previously supported similar views. In a February 3 X post, Park predicted that a "world of weaker dollar and weaker US rates" would send "risk assets in the US will fly through the roof beyond your wildest imagination," specifically mentioning Bitcoin would move "violently higher."
At the time of the original publication, Bitcoin was trading at $83,150, according to CoinMarketCap.
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