In a recent analysis, BitMEX co-founder Arthur Hayes has expressed his views regarding the economic turmoil instigated by the sweeping tariffs introduced by U.S. President Donald Trump. He posits that these economic upheavals will inevitably trigger a cycle of monetary easing, which he believes will serve as a catalyst for a significant rally in Bitcoin (BTC).
As the digital asset markets grapple with instability, Hayes remains confident in his prediction of a substantial upward movement for Bitcoin. He articulates that the economic distortions caused by Trump’s policies will compel central banks to embark on an aggressive wave of money printing, potentially leading Bitcoin to achieve new all-time highs.
The Tariff Tsunami and Its Ripple Effects
This week marked a tumultuous period for the crypto market after Trump announced what experts identify as the largest expansion of U.S. tariffs since 1982. Set to take effect on April 5, imports from 185 nations will incur a 10% blanket tariff, with significantly higher rates applied to key trading partners—34% for China, 20% for the European Union (EU), and 24% for Japan.
This announcement, termed by Trump as “Liberation Day,” sparked immediate sell-offs across various risk assets. Bitcoin plummeted by 7%, dropping from $88,500 to $82,200 within hours, while the overall crypto sector lost around $140 billion. The S&P 500 futures experienced even more severe impacts, with a nearly $2 trillion loss in market capitalization following Trump’s announcement.
Despite the chaos, Hayes views this volatility as an advantageous scenario. Maintaining a bold stance, he tweeted, “I LOVE TARIFFS,” accompanied by charts illustrating the worsening trade imbalances of the United States.
“Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC,” he remarked.
Hayes further contends that the disruption of foreign dollar inflows due to these tariffs will necessitate intervention from the Federal Reserve and other central banks to support sovereign debt markets, essentially reviving the quantitative easing (QE) cycle.
“The Fed and banking system must step up to ensure a well-functioning treasury market, which means Brrrr,” he stated, referencing the popular meme associated with money printing. If Hayes’ perspective is accurate, the primary question remains not whether this influx of capital will enter the cryptocurrency space, but rather when it will happen.
BTC to $250,000?
The former BitMEX CEO has consistently maintained that Bitcoin’s price could soar beyond $250,000 by the end of 2025. This forecast is underpinned by an anticipated surge in the global fiat supply and a growing skepticism towards traditional financial systems.
However, potential risks remain, including Japan’s possible devaluation of the yen, with Hayes forecasting the USD/JPY exchange rate to rise above 160. Additionally, retaliatory tariff increases from other countries could further exacerbate market volatility.
As it stands, Bitcoin continues to strive for stability. At the time of writing, it has experienced a slight price increase of 1% in the last 24 hours, despite registering losses over extended time frames. Over the past 30 days, the asset has decreased by 3.7%, while the past week has seen a dip of approximately 1.1%, marginally outperforming the broader crypto market, which declined by 1.70% during the same period.
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