Tuesday, January, 21, 2025

Arthur Hayes Says Fed Liquidity Shift Will Outweigh Trump Tariff Effects on Crypto Markets

Arthur Hayes says Fed liquidity will outweigh tariff effects and could push Bitcoin toward $110K before retracing.
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Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.
  • Arthur Hayes says Bitcoin’s rise will be driven by Fed liquidity, not Trump’s tariff policies.
  • Hayes predicts the Federal Reserve’s shift to quantitative easing will boost crypto market momentum.
  • He downplays inflation from tariffs, calling it transitory and irrelevant to Jerome Powell’s policy focus.

Bitcoin investor Arthur Hayes expects the upcoming Federal Reserve liquidity move in April to create more market impact than Donald Trump’s potential economic consequences from tariffs.

The Federal Reserve’s decision to adopt quantitative easing instead of quantitative tightening will deliver new capital into the financial system, according to Hayes’ statements in Kyle Chassé’s YouTube interview. Bitcoin’s momentum would get a substantial boost from this move because of the political background that surrounds trade measures.

According to Hayes, short-term price hikes caused by tariffs only represent a temporary economic impact that does not persist in the long run. He rejected short-term inflationary effects from tariffs since they did not endanger the established market system.

Hayes stressed that the Federal Reserve under Jerome Powell does not view tariffs as essential for determining its monetary policies. The price of crypto assets remains guided by liquidity and interest rate policies instead of the tariff debate, which cryptocurrency investors should ignore.

Liquidity Infusion May Drive Bitcoin Surge Despite Policy Risks

Hayes persistently emphasizes that monetary policy establishes fundamental conditions which affect digital asset markets. In other public statements, he consistently indicates that the Federal Reserve plans to adopt quantitative easing. The Federal Reserve reveals this policy by enlarging the circulation of money, which functions as an economic stimulus through reduced financing expenses and increased asset price value.

Several signs pointing to Federal Reserve approval have led him to believe that the foundation for this transformation is already installed. According to Hayes, the influx of capital into cryptocurrency markets would most advantageously benefit Bitcoin.

According to Hayes during his recent public statements, Bitcoin will surge to $110,000 while retreating to $76,500 beforehand. His long-term analysis of Bitcoin suggests it will reach $250,000 due to the growing global money supply and enduring inflation issues.

According to him, monetary policy will continue to dominate financial markets in the near future. Hayes dedicates his analysis to studying strategic central bank actions instead of focusing on geopolitical factors like trade restrictions.

Through his remarks, Arthur Hayes demonstrates that Federal Reserve actions concerning liquidity management and interest rates will establish the primary trajectory for Bitcoin as an asset. His stance on tariffs reflects a change in crypto analyst opinions about the dominant factors that shape digital asset performance since monetary expansion matters more than trade restrictions.

Also Read: SEC to Vote on Ripple Appeal This Week Amid Key Leadership Confirmation

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