Arthur Hayes Forecasts Bitcoin Boom Amid US Tariff Policies

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Arthur Hayes, co-founder of BitMEX, has projected a significant increase in the value of Bitcoin BTC/USD. This anticipated surge is linked to the tariff policies of President Donald Trump.

What Happened: On X Hayes stated that the sell-off of US treasuries and the rise in 10-year bond yields could trigger more money printing. This factor has been known to ignite significant Bitcoin rallies in the past.

Hayes also indicated that the devaluation of China’s yuan due to central bank money printing could encourage investors to transfer their wealth into Bitcoin as a safeguard.

He added that banks might be given a Supplementary Leverage Ratio (SLR) exemption, a proposal supported by JPMorgan Chase CEO Jamie Dimon.

Also Read: Crypto Analyst Predicts 195% Bitcoin Rally, Says Bull Market Not Over Yet

This exemption would permit banks to hold more treasuries without the need to increase required capital reserves, thus providing banks with additional liquidity to lend.

At the time of writing, Bitcoin was trading at $83,343, showing a 4.9% increase in the last 24 hours.

Why It Matters: Hayes’ prediction is significant as it highlights the potential impact of global economic policies on the value of cryptocurrencies. The sell-off of US treasuries and the rise in bond yields, combined with the weakening of China’s yuan, could potentially create a favorable environment for Bitcoin.

Furthermore, the possibility of an SLR exemption for banks could increase liquidity in the market, potentially boosting Bitcoin’s value.

This forecast underscores the interconnectedness of traditional financial systems and the growing cryptocurrency market.

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