Arthur Hayes: Bitcoin Set to Thrive Amid Trade War, Deglobalization, and US-China Decoupling – Here’s Why – The Daily Hodl
Arthur Hayes, the founder of BitMEX, suggests that Bitcoin (BTC) is poised to gain from the ongoing trade conflict and the decoupling between the US and China.
In a recent discussion with Felix Jauvin on the Forward Guidance YouTube channel, Hayes indicates that global governments are likely to resort to money printing to mitigate the repercussions of the trade war, which has historically triggered significant Bitcoin surges.
“China isn’t the only one. Every major economy will need to print substantial amounts of money to cushion the impacts of this attempted separation, this reduction in globalization. Ultimately, yes, they will print money – and Bitcoin will benefit.”
“The inverse of the current account deficit in the US corresponds to our financial account surplus. Thus, all the dollars earned — the trillions amassed from selling to America — have been funneled back into Treasury bonds, stocks, and the Magnificent Seven tech stocks. Therefore, if [US President Donald] Trump is genuinely aiming to reduce the current account to zero, then foreign entities have to divest from stocks – it’s purely mathematical.”
“The pressing question is whether the US government can sustain itself financially if there’s a significant drop in capital gains tax revenue due to a stagnant market. I doubt it. This leads us to a money-printing scenario, where Bitcoin benefits. It will finally separate from tech due to the structural flows and the necessary adjustments for the US government’s affordability.”
While some in the crypto community believe that market instability might push central banks to start acquiring Bitcoin to diversify their assets, Hayes maintains that central banks will continue to favor gold as a safeguard, rather than the leading cryptocurrency.
“I honestly don’t think they’re psychologically ready for that kind of jump. They’re well-acquainted with gold. They’ve been trained in gold. They’ve educated themselves through historical accounts about gold.”
As of now, Bitcoin is trading at $94,832, experiencing a 1.2% increase in the last 24 hours.
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Disclaimer: The views expressed on The Daily Hodl are not investment advice. It’s essential for investors to conduct their own due diligence prior to making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that any transfers and trades are your own responsibility, and you assume all risks associated with potential losses. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor. Note that The Daily Hodl engages in affiliate marketing.
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