David Edwards
The new tariff measures proposed by U.S. President Donald Trump have garnered strong support from BitMEX co-founder Arthur Hayes, who sees them as a driving force behind the rise of Bitcoin. In an April 3 post on X (formerly Twitter), Hayes stated, “Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC.”
Under President Trump’s tariff plan, all imports will be subject to a 10% general tariff starting on April 5; imports from China, the EU, and Japan will be subject to higher tariffs of 34%, 20%, and 24%, respectively.
Hayes contends that as foreign investors withdraw their money from U.S. stocks and repatriate it, these levies may depress the DXY. The dollar may weaken as a result of this capital flight, which would make alternative assets like Bitcoin more alluring.
The news of tariffs have caused a significant reaction in the financial markets. The Nasdaq 100 saw a historic decline of more than 1,000 points on April 3, approaching levels that might cause market circuit breakers. This notable market volatility highlights investor apprehensions regarding the possible economic consequences of the tariffs.
Hayes adds that a devaluation of the Chinese yuan (CNY) could result from the high levies on Chinese imports. Chinese investors may turn to assets like Bitcoin in order to protect their wealth if the value of the yuan declines.
Hayes adds that in order to lessen negative consequences, the Federal Reserve may be forced to adopt monetary easing measures like interest rate reductions or a return to quantitative easing (QE) due to the economic strain caused by the tariffs. By increasing the financial system’s liquidity, such policies could raise demand for riskier assets, such as cryptocurrencies like Bitcoin.
