Crypto Market Forecast: Arthur Hayes’ Shocking Bitcoin Price Prediction After Trump Tariffs

BitMEX co-founder Arthur Hayes expressed support for the recent Trump tariffs news, arguing the economic instability they create ultimately helps Bitcoin. After the Trump administration announced sweeping import taxes, Hayes shared his bullish stance on Bitcoin in a post on X. He believes these trade measures fix global financial imbalances and predicts resulting policy changes like money printing will push BTC price higher.

The new levies set a 10% baseline tax for all imports into the United States starting April 5. Some nations face higher rates, including a significant 34% tax on Chinese goods. The market reacted swiftly: BTC initially dropped 7%, while the Nasdaq 100 had its largest single-day point loss. Hayes, however, thinks long-term tariff effects, such as a weaker dollar and increased liquidity, will benefit Bitcoin investors.

The Weakening Dollar and Bitcoin’s Resilience

A key reason why Hayes favors tariffs involves their effect on the U.S. dollar. He suggests international investors will move their capital from U.S. stocks and repatriate funds, weakening the U.S. Dollar Index. A falling dollar historically aligns with increased interest in alternative stores of value like BTC and gold, pushing BTC price prediction higher.

We need Fed easing, the 2yr treasury yield dumped after Tariff annc because the market is telling us the Fed will be cutting soon and possibly restarting QE to counter -ve economic impact. pic.twitter.com/081kiGf9Jk

— Arthur Hayes (@CryptoHayes) April 4, 2025

Treasury yields dipped notably following the Trump tariffs news, strengthening expectations that the Federal Reserve might step in. This intervention, observers believe, could mean rate cuts or fresh quantitative easing. Hayes argues such actions inject liquidity, making risk assets like Bitcoin more attractive to investors. QE periods have historically matched Bitcoin bull runs, suggesting tariffs might trigger another major rally.

China Tariffs and the Shift in Global Investment Trends

Another tariff outcome Hayes highlights is potential changes in global investment flows, especially in China. Trump tariffs on certain Chinese products effectively hit a 65% rate, putting significant pressure on China’s economy. Hayes argues China could respond by allowing the yuan (CNY) to weaken beyond 8.00 per USD. This might push investors toward alternative assets.

A weaker CNY has previously led Chinese investors to explore alternative financial instruments like Bitcoin. Earlier periods of uncertainty and currency devaluation saw BTC trading volumes jump within China. If the yuan falls significantly due to U.S. tariffs, Hayes predicts renewed demand for Bitcoin could emerge as Chinese investors could use this digital currency to protect capital from currency volatility.

The Role of Central Banks and Future Market Movements

Hayes also stresses the part central banks might play in Bitcoin’s trajectory after the Trump tariffs announcement. Major economic slowdown could push central banks, the Fed included, toward strong monetary easing to stabilize their economies. These steps might involve lower interest rates or restarting quantitative easing, making BTC price prediction more optimistic.

BTC is often termed ‘digital gold’ because of its fixed supply and decentralized structure. If the Fed increases liquidity, investors may turn to Bitcoin as protection against inflation and currency devaluation. Hayes sees this situation as inevitable, bolstering his view that tariffs will eventually boost Bitcoin’s longer-term growth.

Bitcoin’s Future in a Tariff-Driven Economy

While initial Trump tariffs news triggered sharp sell-offs in BTC and traditional markets, Hayes presents a different viewpoint. His outlook finds long-range opportunities within the current short-term market swings. He insists these disruptions speed up monetary easing and undermine fiat currencies, guiding more investors toward BTC.

BTC price currently remains volatile; analysts are watching key support zones between $79,900 and $81,160, as well as potential resistance near the $84,000 mark. If Hayes’s forecast proves correct about economic imbalances causing more liquidity, Bitcoin could be ready for major gains soon. Investors continue monitoring global monetary policies, market directions, and Bitcoin’s reaction to economic changes like U.S. China tariffs.