Arthur Hayes predicts gold and Bitcoin as key hedges in tariff era

Arthur Hayes, co-founder and former CEO of BitMEX (CRYPTO:BMEX), has forecasted a significant shift in global financial strategies as nations adapt to new trade policies under President Donald Trump’s administration.

Hayes asserts that tariffs will drive countries to move away from U.S. treasuries and equities, favoring gold and Bitcoin (CRYPTO:BTC) as "neutral" reserve assets.

Hayes explained that the new trade order signals the end of U.S. treasuries and stocks as dominant global reserve assets.

“Even if Trump backtracks on the severity of the tariffs, no finance minister or world leader can risk Trump changing his mind again,” he stated.

This uncertainty, he argues, will lead nations to adopt gold for settling international trade while Bitcoin gains traction as a decentralised alternative.

In his analysis, Hayes emphasised that the U.S. dollar will remain a reserve currency but will face growing competition from gold and Bitcoin.

He noted that tariffs could exacerbate dollar scarcity globally, forcing countries to adopt "country-first" policies and diversify their reserves into alternative assets.

Hayes also highlighted the historical significance of returning to pre-1971 trade relationships, when gold played a central role in global commerce.

He remarked that Trump’s decision not to impose tariffs on gold underscores its importance in this evolving economic framework.

Advising investors, Hayes recommended acquiring gold, gold mining stocks, and Bitcoin as hedges against inflation and restrictive trade policies.

“For those who want to adapt to a return to pre-1971 trade relationships, buy gold, gold miners, and $BTC,” he advised.

This perspective aligns with Hayes’ broader views on monetary policy.

He has previously argued that central banks’ quantitative easing (QE) measures could inject liquidity into markets, driving demand for hard assets like Bitcoin.

Hayes has even projected Bitcoin could reach $250,000 by 2025 if such policies are implemented.

At the time of reporting, the Bitcoin (BTC) price was $77,055.66.