“Trump’s Tariffs Will Weaken the Dollar – Bitcoin Will Rise” Says Arthur Hayes

Arthur Hayes, co-founder of BitMEX, has expressed his contrary opinion to popular beliefs on the announcement of the new tariffs by U.S. President Donald Trump. Hayes says that the economic shakeup caused by Trump’s tariffs could indirectly benefit Bitcoin. As the United States implements the new policies, Hayes believes that these measures will weaken the traditional currency, creating a conducive environment for cryptocurrencies.

Trump’s Tariffs Disrupting Markets

The Trump administration recently announced a 10% base tariff on all imports starting April 5. Higher rates were set for specific regions, like China at 34%, the EU at 20%, and Japan at 24%. The aim behind these tariffs was to reduce the $1.2 trillion trade deficit and encourage American manufacturing, but they are expected to disrupt the global market. Hayes, however, has spotted a silver lining for Bitcoin in this economic fiasco.  

‘Printed Money Pain Good for BTC’, says Hayes

In a post on X, “Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC.” He argues that tariffs will weaken the U.S. Dollar Index, and foreign investors will sell off U.S. stocks, prompting the Federal Reserve to inject liquidity in the market. This will be done through rate cuts and quantitative easing. Historically, such policies have benefited risk assets like Bitcoin. 

Some of y'all are running scurred, but I LOVE TARIFFS, some chart porn to understand why.

Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC. pic.twitter.com/jc5eZ2VIEa

— Arthur Hayes (@CryptoHayes) April 4, 2025

Hayes’ Bitcoin prediction says that it could rally to $250,000 by the end of 2025 if these conditions play out. He has also predicted that Bitcoin must hold above $76,500 until April 15 to make the most out of the economic conditions beyond that date. In an X post a few days ago, he wrote “Mrkt no likey “Liberation Day”, if $BTC can hold $76.5k btw now and US tax day Apr 15, then we are out of the woods.”  He also suggests inflationary pressure from Trump’s tariffs could push Chinese investors toward Bitcoin to tackle the weakening yuan issue. 

Despite recent turbulence, Hayes’s Bitcoin prediction remains optimistic about its long-term growth. He views printed money as a driver of Bitcoin’s growth, calling it “the hardest money ever created”. However, the overall market sentiment spells “CAUTIOUS’ as Bitcoin slumps and recovers. Let’s take a look at the latest Bitcoin price analysis and try to form our own BTC price prediction for today. 

BTC Price Analysis of Past 24 Hours: BTC Recovers Slowly

Bitcoin started the day at $82,563, tasked with the responsibility of recovering from the Liberation Day crash. With the market already oversold, a golden cross formed, and Bitcoin climbed handsomely, reaching $83,791. It faced strong resistance at the $84,000 mark. However, the bullish trend could not take Bitcoin across that level as it consolidated, with support close by at $83,250. It attempted upward movements a few times, but the RSI stabilized around the 45 mark, failing to give the push. BTC eventually dropped the support, only to try to test the resistance in the coming hours. 

Chart 1- published on Tradingview, April 4, 2025 

The 09:45 failure pushed Bitcoin down to $81,389 at 15:10. The coin now faced strict resistance at $82,337. A stable uptrend formed, as the support line kept rising. This bullish triangle helped BTC eventually break resistance and climb up to $83,364 by the onset of April 4, thanks to the golden crosses at 15:15 and 20:45 UTC. With the market overbought, a death cross formed as BTC made its way down. The support held still, hinting at a bearish triangle, but the buying interest held BTC in good stead as it exploded up. A golden cross at 7:00 AM UTC supported this climb as Bitcoin reached $84,645.

BTC Price Prediction: Can Bitcoin Continue the Uptrend?

Bitcoin’s recovery from dramatic falls in the past few weeks has been slow, resetting its progress. For now, Bitcoin seems to have barely made its way up. However, the price action towards the end has been interesting. Bitcoin defied a bearish triangle to show impressive gains early on April 4. Despite the highly overbought RSI, it continued to climb to reach its 24H high. This calls for a strict correction. The buying pressure is bound to fall off rapidly, and Bitcoin will again start recovering from scratch.

The post “Trump’s Tariffs Will Weaken the Dollar – Bitcoin Will Rise” Says Arthur Hayes appeared first on Coinfomania.