- Hayes: Fed liquidity (QE shift) will trump tariff effects, boosting Bitcoin
- He downplays tariff impact, calling it transitory noise irrelevant to crypto
- Hayes reiterates bullish BTC targets ($110k possible soon, $250k long-term)
Kyle Chassé, a Bitcoin veteran since 2012, hosted Arthur Hayes, the former BitMEX CEO, in an interview on his YouTube channel. They discussed several topics, with Hayes arguing that the Federal Reserve’s (Fed) potential liquidity surge in April could overshadow Trump’s tariff policies, boosting Bitcoin’s bullish trajectory.
He addressed the concerns about tariffs, downplaying their significance and labeling the resulting inflation as transitory. Hayes implies that while tariffs might cause short-term price increases, they are unlikely to have a lasting impact on the economy or financial markets.
Hayes Downplays Tariff Impact: ‘Don’t Matter’ for Crypto?
Consequently, he believes that the Fed’s monetary policy decisions will have a more profound effect on market dynamics than trade tariffs. Also, he said that tariffs don’t matter to Jerome Powell (Chair of the Federal Reserve) and that they shouldn’t matter to crypto investors either.
Earlier, outside of this interview, Hayes said that he anticipates the Fed to transition from quantitative tightening (QT) to quantitative easing (QE). This shift involves moving from reducing the money supply to increasing it, effectively injecting liquidity into the financial system.
Actions like these are usually done to stimulate economic activity and can lead to increased investment in various assets, including cryptocurrencies. Hayes suggested that the groundwork is being laid for a new phase of substantial liquidity infusion.
Arthur Hayes’ Recent Predictions
Hayes has been rather vocal recently in the crypto world, sharing his insights and thoughts on many current topics. Not long ago, he made a bold prediction that Bitcoin’s price could reach $110,000 before experiencing a pullback to around $76,500.
He attributes this possible surge to the likely increase in market liquidity resulting from the Fed’s policy shift. Also, Hayes envisions a long-term target for Bitcoin as high as $250,000, driven by factors such as inflation, Fed policy, and overall market liquidity.
He definitely maintains a bullish stance when it comes to Bitcoin, suggesting that the Fed’s expected move towards quantitative easing could notably impact financial markets, which in turn might propel Bitcoin to new highs.
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