As global markets reel from President Donald Trump’s sweeping tariff initiative, former BitMEX CEO Arthur Hayes has taken an unexpected stance: he believes the policy shift is ultimately positive for Bitcoin.
In a direct post on X (formerly Twitter), Hayes wrote, “I LOVE TARIFFS,” stating that the near-term disruption will likely give way to medium-term gains for both Bitcoin and gold.
“Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC,” Hayes added.
Trump’s Trade Shock and Market Response
Signed on April 2, Trump’s executive order introduces a 10% tariff across all imports, with higher rates on Chinese and EU goods. Dubbed “Liberation Day,” the policy aims to revitalize American industry but has triggered widespread panic in equities.
The Nasdaq 100 suffered its largest single-day point drop in history on April 3, with major indices falling sharply amid fears of stagflation.
Hayes: Tariffs Will Undermine Fiat, Boost Bitcoin
In a follow-up blog post, Hayes elaborated on his outlook:
- Tariffs will likely weaken the U.S. dollar as global investors retreat from dollar-denominated assets.
- China may devalue the yuan (CNY) in response, potentially pushing it beyond 8.00 against the dollar.
- Capital could flow into Bitcoin as a hedge against both fiat currency volatility and geopolitical instability.
He also highlighted the bond market’s dovish reaction, pointing to a decline in 2-year Treasury yields.
“The market is pricing in rate cuts and a return to QE,” Hayes noted.
“Be patient, be nimble, be liquid.”
Bitcoin: Poised for Growth on Liquidity Tailwinds
Hayes argues that Bitcoin’s price is now almost entirely driven by liquidity trends rather than technical innovation:
“The tech is stable. What matters now is fiat liquidity—and it’s coming.”
With traditional equities under pressure, Hayes believes Bitcoin could reassert itself as a store of value, particularly as central banks respond with easing.
Industry Reactions: Sentiment Turning Cautiously Bullish
Several industry leaders echoed Hayes’ views:
- Gadi Chait, Investment Manager at Xapo Bank, said that despite short-term volatility, Bitcoin’s long-term fundamentals remain strong.
- Gus van Rijckevorsel, CEO of Ultra, warned the economic impact of tariffs could linger through Q2, but signs of stabilization are already appearing.
- James Toledano, COO at Unity Wallet, noted Bitcoin’s relative strength, trading at $83.7K, down only 4.4% for the week.
“It’s not a full safe haven yet,” Toledano said, “but it’s definitely moving in that direction.”
