Arthur Hayes sees tariffs driving Bitcoin growth

BitMEX (CRYPTO:BMEX) co-founder Arthur Hayes has expressed confidence that U.S. President Donald Trump’s new tariff policies could positively impact Bitcoin’s (CRYPTO:BTC) price in the medium term.

Hayes believes that the economic disruptions caused by tariffs will lead to monetary easing, creating favorable conditions for Bitcoin and other risk assets.

“Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC,” stated Hayes in an April 3 post on X.

He emphasised that the weakening of the U.S. Dollar Index (DXY) and increased liquidity from Federal Reserve actions could drive Bitcoin’s growth.

The tariffs, set to take effect on April 5, include a 10% rate on all imports, with higher rates for specific regions such as China (34%), the European Union (20%), and Japan (24%).

Hayes noted that stringent tariffs on China could weaken the yuan (CNY), potentially prompting Chinese investors to shift their wealth into riskier assets like Bitcoin.

Hayes also highlighted broader market volatility as a catalyst for Bitcoin’s rise.

On April 3, the Nasdaq 100 experienced its largest single-day point loss in history, signaling economic uncertainty.

Hayes argued that such conditions could encourage investors to diversify into alternative assets like Bitcoin and gold.

Additionally, Hayes pointed to the Federal Reserve’s likely response to these economic disruptions.

He noted that the two-year Treasury yield dropped sharply following the tariff announcement, indicating market expectations of rate cuts and possibly a return to quantitative easing (QE).

Historically, such measures have boosted demand for cryptocurrencies as liquidity increases.

Other analysts echo Hayes’ optimism about Bitcoin’s potential in this environment.

Jeff Park of Bitwise Invest has argued that Trump’s tariffs could lead to a weaker dollar and lower U.S. interest rates, driving risk assets higher.

“Bookmark this and revisit as the financial war unravels, sending Bitcoin violently higher,” Park stated earlier this year.

At the time of reporting, the Bitcoin (BTC) price was $84,317.25.