Kyle Chasse, a veteran of Bitcoin since 2012, was held in an interview with former BitMex CEO Arthur Hayes on his YouTube channel. They discussed several topics, and Hayes argued that the Federal Reserve’s potential liquidity surge in April could overshadow Trump’s tariff policies and boost Bitcoin’s bullish trajectory.
He addressed tariff concerns, downplayed its importance and labeled the resulting inflation as temporary. Hayes means that tariffs can cause short-term price increases, but are unlikely to have a lasting impact on the economy and financial markets.
Hayes downplays the effects of tariffs: “unrelated” in code?
As a result, he believes that the Fed’s monetary policy decisions will have a greater impact on market dynamics than trade tariffs. He also said tariffs are not related to Jerome Powell (the chairman of the Federal Reserve), and that they are not important to crypto investors either.
Previously outside of this interview, Hayes said he expects the Fed to move from quantitative tightening (QT) to quantitative mitigation (QE). This shift includes moving from reducing money supply to increasing it, effectively injecting liquidity into the financial system.
Such actions are usually carried out to stimulate economic activity and can lead to increased investment in a variety of assets, including cryptocurrencies. Hayes suggested that the foundation was laid for a new stage of substantial fluidity injection.
Arthur Hayes’s recent predictions
Hayes has been quite vocal in the Crypto world recently, sharing insights and thoughts on many current topics. Not long ago, he made a bold prediction that when Bitcoin prices reach $110,000, he would experience a pullback to about $76,500.
He attributes this possible surge to the possibility of increased market liquidity due to the Fed’s policy changes. Hayes also envisions a long-term target of $250,000 Bitcoin, driven by factors such as inflation, Fed policy and overall market liquidity.
He has certainly maintained a bullish stance when it comes to Bitcoin, suggesting that the Fed’s expected move towards quantitative easing could have an impact on financial markets.
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