Co -founder of Bitmex, Arthur Hayes, says that the tariffs of US President Donald Trump can in some respects to fire a global economy, but the same disturbance can be exactly what Bitcoin needs to meet.
“Global imbalances will be improved and the pain flows out with printed money, which is good for BTC,” Hayes he said In the post of April 3.
Several factors contribute to the potential bitcoin pump
“Some of you run, but I love tariffs,” Hayes said.
His comments appear only a day after the announcement that Trump’s administration will hit all countries with a 10% tariff from April 5, and some countries will deal with even higher rates, such as China in the face of 34% tariff, European Union 20% and Japan 24%.
Hayes explained that the tariffs have a positive effect on the price of Bitcoin (BTC) for several reasons.
At the time of publication, Bitcoin has USD 83 150. Source: Coinmarketcap
He said that one of them is the “weakness” of the American dollar index (DXY), because foreign investors still sell US shares and “bring money home.”
On April 3, he meant “the largest one -day loss for Nasdaq 100 in history”, According to to the Kobeissi list of commercial resources.
“The index lost a total of -1060 points and dropped only 1.5% from the launch of the first switch from March 2020.” Kobeissi said.
“It is good for BTC and gold in the medium period.”
Hayes also said that a raw tariff applied to China can weaken Juan (Cny). “At 65% of the effective tariff, China could answer, enabling the weakening of Minia 8.00,” said Hayes.
The weakening Juan can force the hand of Chinese investors to look at more risky assets, such as Bitcoin, to maintain their wealth.
Meanwhile, Hayes said that “we need to facilitate feeding”, noting that the two -year treasure profitability “dropped” after a tariff announcement.
Related: Bitcoins sales after USD 109,000 of all time “much below” bicycle tops-Glassnode
He explained this as a signal that markets expect that the federal reserve would reduce the indicators and potentially restart quantitative alleviation (QE) to balance the negative economic impact.
Fed rate reductions enhance liquidity, and also makes more risky assets, such as crypto more attractive to investors.
Source: Arthur Hayes
Meanwhile, Jeff Park, the head of the Alpha strategy in Bitise Invest, has long claims that Trump’s tariffs will ultimately benefit Bitcoin.
He he said February 3, that in the “world of weaker dollar and weaker US rates … Risk assets in the USA fly through the roof beyond your wildest imagination.”
“Add it to bookmarks and visit again when the financial war is developing, sending bitcoins higher,” said Parks on February 3.
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This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.