Financial markets are responding to uncertainty as the US prepares for a new wave of tariffs set to take effect on April 2nd.
President Donald Trump’s tariff policies targeting Canadian and Mexican goods, Chinese cars and more have caused volatility, but Arthur Hayes, Maelstrom’s chief investment officer and co-founder of Bitmex, believes these measures have little impact on Bitcoin’s travel.
In a podcast with Kyle Chasse, Hayes noted that Fed Chair Chairman Jerome Powell’s recent stance on monetary policy outweighs the importance of tariffs. Citing Powell, Hayes says, “The inflation aspect of tariffs is temporary,” indicating that the Fed is ready to inject more liquidity into the system.
According to Hayes, the currency easing could provide a favorable environment for Bitcoin and other dangerous assets. “Taxes don’t matter to Powell either, and should not be important to crypto investors,” he said, “Because I know that Trump is imposing a 50% tariff, whether he imposes just 2%, Powell will continue to maintain simple financial terms to assess his assets.”
Hayes suggested that even if Trump’s tariffs led to inflationary pressure, Powell ignored concerns, continued to support adjustment policies, and could open the door for more quantitative easing.
Earlier this week, Hayes revised its Bitcoin price forecast, predicting a $110,000 rally.
*This is not investment advice.
