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Arthur Hayes, CIO of Maelstrom, discussed the potential implications of U.S. tariffs policy on the cryptocurrency market, especially Bitcoin. This week, over $100 billion from crypto’s total market was wiped out within 30 minutes. BTC plunged over 8% within hours, though it managed to hold strong compared to stock markets. While the token recovers, the crypto market continues to be volatile.
Hayes believes that the imposition of tariffs could spark global economic imbalances, forcing central banks to print more money to address economic strains. This could potentially boost Bitcoin’s value as influx of fiat currency into the economy might turn investors toward assets with limited supply, like BTC.
While Trump defended the tariffs, the crypto exec thinks it could weaken the U.S. dollar in the long term, leading foreign capital to divest from U.S. tech stocks and repatriate funds. Bitcoin might benefit in the medium term. Additionally, the Federal Reserve could initiate emergency interest rate cuts and implement quantitative easing, all these can act as price triggers for BTC.
Hayes also speculated that countries like China or Japan might need their central banks to unlock RMB or yen liquidity or increase quantitative easing efforts to depreciate their respective currencies as a hedge against tariffs. Such measures could release significant capital flight into Bitcoin, favoring the token.
Such scenarios unfolded in 2013, 2015 (when the People’s Bank of China devalued the yuan against the dollar), and 2017 (following capital outflow crackdowns). At that time, Chinese investors sought alternatives, injecting significant funds into Bitcoin and triggering major price appreciation.
Overall, as per Hayes, tariff policies could act as a catalyst that could inadvertently create favorable conditions for Bitcoin and other cryptocurrencies. He believes that the resulting monetary policies aimed at addressing these imbalances may drive increased interest and investment in digital assets.
Filed Under: Bitcoin News, News
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