Keynote
Hayes believes tariffs could lead to a decline in the US Dollar Index (DXY), pushing Chinese investors up to Bitcoin. Bitcoin is relatively resilient despite the NASDAQ plummeting to 6% and the S&P 500 falling 5% since tariff announcements. Altcoins also shows a drop in sales pressure compared to the beginning of the week.
Amidst the major crypto market turmoil caused by Trump’s mutual tariffs this week, Bitmex co-founder Arthur Hayes explained that tariffs prove to be good for Bitcoin despite the short-term pain.
BTC
$83 395
24-hour volatility:
2.0%
Market Cap:
$1.65 t
Vol. 24H:
$46.71 b
We’ll gather first.
Some of the y’all runs but I love tariffs. I love chart porn to understand why.
Global imbalances are fixed and pain enters on paper with printed money. This is good for $BTC. pic.twitter.com/jc5ez2via
– Arthur Hayes (@cryptohayes) April 4, 2025
Earlier this week on April 2nd, Donald Trump’s mutual tariffs began, sending shockwaves across the crypto and global equity market. On Thursday, the NASDAQ index tanked 1,000 points or 6%, while the S&P 500 tanked 275 points at 5%. Nevertheless, the rest of the Bitcoin and crypto market were able to maintain relatively well.
Crypto investors seem to be watching past Trump’s tariffs. Bitcoin is trading at $84,233, as it has grown by 0.80% at press time. Additionally, altcoin also expects sales pressure to be lower compared to earlier this week.
Arthur Hayes: Tariffs can boost Bitcoin as the dollar weakens
Hayes believes Trump’s tariffs and weakening of the US dollar could be positive for Bitcoin prices as demand for alternative asset classes rises. He also noted that tariffs could contribute to a decline in the US Dollar Index (DXY) as international investors remove US stocks and home funds.
Additionally, Hayes said the 65% tariffs imposed on China could lead to depreciation of the Chinese Yuan (CNY), with China’s 65% tariffs above 8.00, and that Chinese investors could seek evacuation to dangerous assets like Bitcoin.
He also said the Fed should intervene, highlighting the sharp decline in Treasury yields over the past two years following the tariff announcement. He interpreted this as an indication that the market would predict a reduction in the Fed rate or even a return to quantitative easing (QE). Such liquidity measures can portend ample for risk-on assets such as Bitcoin and crypto.
Why isn’t everything going well for BTC yet?
Bitcoin prices hold solid support of $82,000, but indicators on the chain show that long-term investors are losing patience. Crypto analyst Ali Martinez highlights the potential changes in the dynamics of the Bitcoin market as long-term holders exceeded 1,058 BTC on Wednesday.
Yesterday, long-term holders moved beyond 1,058 #bitcoin $btc! Signs of profits when the old coin returns to the market. pic.twitter.com/wdbugvitxa
– Ali (@Ali_Charts) April 4, 2025
Returning old coins to circulation suggests signs of profit, potentially adding sales pressure to the market.
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Bhushan is a fintech enthusiast and has a good talent for understanding financial markets. His interest in economy and finance has attracted attention to new emerging blockchain technologies and cryptocurrency markets. He is constantly involved in the learning process and continues to motivate him by sharing the knowledge he has acquired. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
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