Trump’s Tariffs Might Stoke a Bitcoin Rally, Claims BitMEX Co-Founder Arthur Hayes
Key Takeaways:
- Arthur Hayes forecasts Trump’s tariff-driven economic policies would help Bitcoin to gain.
- Tariffs might undermine the U.S. dollar, hence encouraging liquidity inflows that have traditionally benefited Bitcoin.
- If these macro conditions develop, Hayes thinks Bitcoin might reach $250,000 by end-2025.
Arthur Hayes, former CEO of BitMEX, has reignited controversy in the cryptocurrency community with his most recent view on U.S. economic policies. Hayes claims that recently declared tariffs under Donald Trump’s economic agenda would cause a dollar devaluation, hence preparing the ground for a bullish Bitcoin surge.
Read More: Bitcoin Rises to $87K & BitMEX Co-Founder Predicts New ATH as BTCBULL Presale Crosses $4M
Trump’s Tariff Policy: What’s Changing?
President Trump’s administration has put into place a thorough tariff plan set to take effect on April 5. All imports will be subject to a base duty of 10%, with higher rates related to particular areas, including 34% for Chinese goods, 20% for imports from the European Union, and 24% for Japanese products. The United States intends to reduce the trade imbalance, now over $1.2 trillion, and return manufacturing to American land with the use of these levies.
Though they are meant to strengthen domestic industry, economists and market observers warn these measures might generate inflation, upset supply networks, and provoke foreign retaliation. Conversely, Hayes sees possibility in the chaos.
Read More: White House Changes April 2 Tariff Plan; Bitcoin Reacts to Economic Change
Hayes: “Hard Money” Demand Will Be Driven by Tariffs
Arthur Hayes contends that tariffs’ macroeconomic instability could undermine fiat currencies, particularly the U.S. dollar. He thinks that Bitcoin will finally gain from this volatility together with anticipated Federal Reserve actions such rate reductions and quantitative easing.
Hayes wrote on X, “Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC.”
His justification? Historically, anytime central banks add liquidity to the system, risk assets like Bitcoin tend to rise. Should foreign investors leave U.S. markets, the Fed could have to move fast to keep economic momentum going, hence generating a situation that has already driven crypto rallies.
Forecast for Bitcoin Price: $250K in View?
Should the macroeconomic situation he describes develop, Hayes forecasts Bitcoin might climb as high as $250,000 by the end of 2025. He does, though, provide a short-term caution: To keep its upward potential, the price has to remain above $76,500 until April 15, U.S. tax day.
According to him, “Mrkt no likey ‘Liberation Day’. Should $BTC hold $76.5k btw now and US tax day Apr 15, we are out of the woods.
China’s Influence and the Yuan Element
Hayes also highlights the possibility for Chinese investors to look to Bitcoin as a hedge against a declining yuan. Should Trump’s tariff plan cause more Chinese currency devaluation, Bitcoin may start to be preferred store of value for mainland investors.
This gives Hayes’s argument a worldwide perspective, implying that capital may be pushed into decentralized, borderless assets like BTC in response to U.S. tariffs.
Conditions on the market stay erratic
Hayes’s hopefulness nonetheless, the larger cryptocurrency market seems wary. In recent weeks, Bitcoin has fluctuated significantly between quick recovery and severe sell-offs. Although long-term trend is positive, traders are constantly monitoring support and resistance areas.
Hayes keeps emphasizing Bitcoin’s particular status as “the hardest money ever created,” claiming that conventional economic tools will lose their power with time.
Divergence Increasing Between Bitcoin and the Dollar?
Among the most striking things Hayes notes is the potential separation between Bitcoin and conventional financial indices as the Nasdaq. Shared investor characteristics and macroeconomic factors have led Bitcoin to often track equities markets, especially tech stocks. Hayes suggests, however, that this link could be deteriorating.
“Maybe we finally broke the correlation with Nasdaq,” his remark suggests a possible change in how Bitcoin is traded. Should this be the case, BTC might be developing into a separate macro asset driven more by monetary policy than stock market movements.
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