Arthur Hayes loves tariffs because printed money pain is good for bitcoin

Bitmex co-founder Arthur Hayes says that US President Donald Trump's tariffs could somehow rattle the global economy, but the same confusion may just need Bitcoin to rally.

“The global imbalance has been fixed and the pain is papered with printed money. This is good for BTC,” Hayes said in the X-Post on April 3.

Several factors contribute to the potential pumps of Bitcoin

“Some of all of us run, but I love tariffs,” Hayes said.

His comments were the day after the Trump administration announced that it would clash with all countries with 10% tariffs starting April 5, some countries facing even greater charges face 34% tariffs, 20% European Union and 24% in Japan.

Hayes explained that tariffs have a positive impact on the price of Bitcoin (BTC) for several reasons.

One of them is “weakening” the US Dollar Index (DXY) as foreign investors continue to sell US stocks and “take home the money.”

April 3 was marked “the largest daily loss of the Nasdaq 100 in history,” according to the trade resource account The Kobeissi Letter.

“The index has lost a total of -1060 points and is only 1.5% away since March 2020 since triggering the first circuit breaker,” Kobeissi's letter said.

“This is good for BTC and gold in the medium term.”

Hayes also said the strict tariffs placed in China could weaken the Yuan (CNY). “With effective tariffs of 65% were collected, China was able to respond by allowing CNY to weaken 8.00 in the past,” Hayes said.

The weakening of Yuan could force Chinese investors to maintain their wealth in the hands of high-risk assets such as Bitcoin.

Meanwhile, Hayes said “we need to resupply,” and that the Treasury Department was “dumped” following the tariff announcement for the two years.

Related: Bitcoin sales are $109,000, the highest ever “significantly down” cycle top – GlassNode

He described this as a signal that the market hopes the Federal Reserve could cut interest rates and potentially restart quantitative easing (QE) to offset the economic impact.

Reducing the Fed rate will improve liquidity and make risky assets like crypto more attractive to investors.

Meanwhile, Jeff Park, head of Alpha Strategies at Bitwise Invest, has long argued that Trump's tariffs will ultimately benefit Bitcoin.

He said on February 3, “In a world where the dollar is weak and the US rate is weak… US risky assets fly across the roof beyond your wildest imagination.”

“I'll bookmark this and revisit it like the financial war has been unleashed and Bitcoin is being sent fiercely high,” Parks said on February 3rd.

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This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.