Arthur Hayes supports tariff policies, believing that the pain of printing money is beneficial for Bitcoin (BTC).

CN
13 days ago

Source: Cointelegraph Original: "{title}"

BitMEX co-founder Arthur Hayes stated that although U.S. President Trump's tariffs may disrupt the global economy in some ways, this disruption could be just the catalyst needed for Bitcoin (BTC) to rise.

"The global imbalance will be corrected, and the pain will be masked by money printing, which is beneficial for Bitcoin," Hayes said in a tweet on April 3.

Several factors contribute to Bitcoin's potential for an increase.

"Some of you may be scared, but I like tariffs," Hayes said.

The day before his remarks, the Trump administration announced that starting April 5, a 10% tariff would be imposed on all countries, with some countries facing higher tariffs, such as China at 34%, the EU at 20%, and Japan at 24%.

Hayes explained that there are several reasons why tariffs are favorable for Bitcoin's price.

At the time of this article's publication, Bitcoin was trading at $83,150. Source: CoinMarketCap

One reason is the "weakness" of the U.S. dollar index (DXY), as overseas investors continue to sell U.S. stocks and "bring the money back home."

He mentioned that one factor is the "weakness" of the U.S. dollar index (DXY), as overseas investors continue to sell U.S. stocks and "bring the money back home."

According to trading resource account The Kobeissi Letter, April 3 marked the "largest single-day point drop in the history of the Nasdaq 100 index."

The Kobeissi Letter stated, "The index fell a total of 1,060 points, just 1.5% away from triggering a circuit breaker for the first time since March 2020."

"This is favorable for Bitcoin and gold in the medium term."

Hayes also stated that the strict tariffs imposed on China could weaken the Chinese yuan (CNY). "With an effective tariff of 65%, China may respond by allowing the yuan to depreciate to above 8," Hayes said.

The depreciation of the yuan could force Chinese investors to turn to riskier assets like Bitcoin to preserve value.

At the same time, Hayes stated, "We need the Fed's easing policy," and noted that after the tariff announcement, the two-year Treasury yield "fell significantly."

He explained that this is a signal that the market expects the Fed to cut interest rates and possibly restart quantitative easing (QE) to offset negative economic impacts.

The Fed's rate cuts increase liquidity and make risk assets like cryptocurrencies more attractive to investors.

Meanwhile, Jeff Park, head of Alpha strategies at Bitwise Invest, has long believed that Trump's tariff policy will ultimately benefit Bitcoin (BTC).

On February 3, he stated that in a "world of a weak dollar and lower U.S. interest rates… U.S. risk assets will soar beyond your wildest imagination."

Parks also said on February 3, "Please save this and revisit it when the financial war unfolds; it will drive Bitcoin to rise violently."

This article does not contain investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research when making decisions.

Related: Bitcoin surges to $88,500, shorts are crushed, and spot trading volume spikes—will the tariff war end this frenzy?

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