Bitmex co-founder Arthur Hes says that US President Donald Trump’s tariffs may rattle the global economy in some ways, but the same disruption may require bitcoin to rally.
“Global imbalance will be cured, and pain will be placed on paper with printed money, which is good for BTC,” Hayes Said 1 April 3X Post.
Many factors contribute to a potential pump of bitcoin
Hayes said, “Some are doing Y’Al Scar, but I like Tariffs a lot.”
Their comments come exactly a day after the announcement that the Trump administration will hit all countries with 10% tariff starting from April 5, some countries will face even more rates, such as China is facing 34% tariffs, European Union 20% and Japan.
Hayes reported that tariffs positively affect the price of bitcoin (BTC) for several reasons.
Bitcoin is trading at $ 83,150 at the time of publication. Source: Coinmarketcap
One of them, he said, the US dollar is “weak” of the index, as foreign investors sell American shares and “bring money home.”
3 April marked “The biggest single-day point loss for Nasdaq 100 in history,” According Kobisi letter in trading resource account.
“The index lost a total of -1060 points and after March 2020, the index lost a total of 1.5% from triggering the circuit breaker before March 2020.”
“It is good for BTC and gold in the medium period.”
Hayes also said that tough tariffs placed on China can weaken the CNY. “With 65% effective tariffs, China responded by allowing CNY to weaken the last 8.00,” Hayes said.
A weak yuan can force the hands of Chinese investors to see a risk -like property like bitcoin to preserve their money.
Meanwhile, Hayes stated that “we need to reduce the fed,” given that a two -year -old Treasury yielded “dump” after the tariff declaration.
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He explained it as a sign that markets expect a potentially quantitative ease (QE) to re -start the rates from the Federal Reserve and to offset negative economic impact.
The fed rate cut increases liquidity, causing risky property -like property to be more attractive to investors.
Source: Arthur Hayes
Meanwhile, in bitwaiz investments, Alpha Strategy’s head Jeff Park has long argued that Trump’s tariff would eventually benefit bitcoin.
He Said On February 3 that “in the world of weak dollars and weak American rates … risk property in America will fly through the roof beyond your wild imagination.”
Parks said on 3 February, “Bookmark it and see again as a financial war, send bitcoins violently high.”
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There are no investment advice or recommendations in this article. Each investment and business move include risk, and readers should conduct their own research while taking decisions.
