BitMEX co-founder Arthur Hayes argues that Trump’s reciprocal tariffs will ultimately benefit Bitcoin by weakening the US dollar and increasing the demand for alternative assets.
Amid the major crypto market turmoil caused by Trump’s reciprocal tariffs this week, BitMEX co-founder Arthur Hayes explained that despite the short-term pain, tariffs would prove to be good for a Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B rally ahead.
Some of y'all are running scurred, but I LOVE TARIFFS, some chart porn to understand why.
Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC. pic.twitter.com/jc5eZ2VIEa
— Arthur Hayes (@CryptoHayes) April 4, 2025
Earlier this week on April 2, Donald Trump’s reciprocal tariffs kicked in, sending shockwaves across crypto and the global equity market. On Thursday, the Nasdaq Index tanked 1000 points or 6%, while the S&P 500 tanked 275 points for 5%. Despite this, Bitcoin and the rest of the crypto market have managed to hold off relatively well.
Crypto investors seem to be looking past Trump’s tariffs, as Bitcoin is trading 0.80% up at $84,233, at press time. Furthermore, altcoins are also seeing less selling pressure in comparison to earlier this week.
Arthur Hayes: Tariffs Could Boost Bitcoin as Dollar Weakens
Hayes believes that the imposition of Trump’s tariffs and the weakening US Dollar could be positive for Bitcoin price, as demand for the alternative asset class rises. He also pointed out that tariffs may contribute to a decline in the US Dollar Index (DXY) as international investors offload US stocks and repatriate funds.
Furthermore, Hayes stated that a 65% tariff imposed on China could lead to a depreciation of the Chinese yuan (CNY) beyond 8.00, potentially prompting Chinese investors to seek refuge in riskier assets like Bitcoin.
He also stated that the Fed should intervene, highlighting that the two-year Treasury yield fell sharply after the tariff announcement. He interpreted this as a sign that markets anticipate Fed rate cuts or even a return to quantitative easing (QE). Such liquidity measures could bode well for risk-ON assets like Bitcoin and crypto.
Why Everything Is Not Well for BTC Yet
While Bitcoin price has been holding firmly above the $82,000 support, on-chain indicators show that long-term investors are losing patience. Crypto analyst Ali Martinez has highlighted a potential shift in Bitcoin market dynamics as long-term holders transferred more than 1,058 BTC on Wednesday.
Long-term holders moved over 1,058 #Bitcoin $BTC yesterday! Signs of profit-taking as older coins return to the market. pic.twitter.com/WdbuGVITXa
— Ali (@ali_charts) April 4, 2025
The movement of older coins back into circulation suggests signs of profit-taking, potentially adding selling pressure to the market.
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