BITMEX Co-founder Arthur Hayes: Trump’s Tariff-triggered Economic Chaos Will Lead to Monetary Easing, Acting as Rocket Fuel for Bitcoin (BTC)
Arthur Hayes, the co-founder of BITMEX, believes that the economic turmoil triggered by U.S. President Donald Trump’s tariffs will inevitably lead to a monetary easing cycle, which he views as rocket fuel for Bitcoin (BTC).
As the digital asset market struggles to stabilize, crypto enthusiasts are doubling down on his prediction of a massive rally for Bitcoin. He asserts that the economic imbalances caused by Trump’s policies will compel central banks to unleash a wave of printing, thereby propelling the first cryptocurrency to new all-time highs.
The Tsunami of Tariffs and Its Ripple Effects
This week, the cryptocurrency market faced violent restructuring after Trump unveiled what economists are calling the largest expansion of U.S. tariffs since 1982. Beginning April 5, imports from 185 countries will face a blanket tariff of 10%, with much higher rates for major trading partners: 34% for China, 20% for the European Union (EU), and 24% for Japan.
This move, framed by the U.S. President as a “day of liberation,” triggered immediate sell-offs across risk assets. Bitcoin dropped 7%, from $88,500 to $82,200, as the industry shed $140 billion. Following Trump’s announcement, S&P 500 futures took an even harder hit, with nearly $2 trillion in market value erased.
However, Hayes sees chaos as an opportunity. In a provocative tone, he posted on X, “I love tariffs,” along with charts emphasizing America’s trade imbalances.
He wrote, “Global imbalances will be corrected, and with printed monetary paper, this will be beneficial for $BTC.” He also argues that by disrupting foreign dollar inflows, the tariffs will force the Federal Reserve and other central banks to intervene and support sovereign debt markets, effectively restarting the quantitative easing (QE) cycle.
Hayes stated, “The Fed and banking system must be strengthened to ensure a functioning Treasury market, which means BRRRR.” If his view is correct, the question is not if but when this money will enter the cryptocurrency market.
BTC to $250,000?
The former Bitmex CEO has repeatedly predicted that Bitcoin’s price could surpass $250,000 by the end of 2025, driven by global fiat currency expansion and a distrust of the traditional financial system.
However, there are still risks to consider, including the potential devaluation of the Japanese yen, predicted to exceed USD/JPY 160. Other countries may also further widen volatility with their own tariff rates.
Meanwhile, BTC continues to struggle to regain its footing. As of writing, its price has increased by 1% over the past 24 hours, although it has registered losses over a longer timeframe. Over the past 30 days, the asset has declined by 3.7%, while in the past week, it has lost about 1.1% of its value, in contrast to a 1.70% drop in the broader cryptocurrency market during that period.
