Bitcoin and crypto prices have dropped back as inflation fears and U.S. president Donald Trump’s tariff threats continue to weigh on the bitcoin price (as well as fresh fears over a new, mystery hack).
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The bitcoin price has fallen back toward $80,000 per bitcoin after soaring toward $90,000 this week even after the confirmation of a long-awaited bitcoin game-changer.
Now, as bitcoin is found to be outperforming Elon Musk’s Tesla, legendary crypto trader Arthur Hayes has predicted the Federal Reserve will trigger a bitcoin price boom in April.
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Federal Reserve chair Jerome Powell could be about to triggering bitcoin price and crypto market … More
“There was a seminal change in the [Federal Reserve chair Jerome Powell’s] tone at the last Fed board meeting,” Hayes, the cofounder of crypto deivatives pioneer BitMex who went onto launch the Maelstrom investment company, told podcaster Kyle Chasse.
Hayes, who’s this week been granted a pardon along with his fellow BitMex founders Benjamin Delo and Samuel Reed for Bank Secrecy Act violations by U.S. president Donald Trump, believes the Fed is “teasing” a return to “stealth” money printing known as quantitative easing even as it’s grappling with the $36 trillion U.S. debt pile that’s spiraled out of control since 2020.
Hayes pointed to comments made by Powell at the latest Fed press conference that “inflationary aspects of tariffs are transitory.”
“Tariffs don’t matter any more to Powell, and they shouldn’t matter as crypto investors,” said Hayes. “If Trump does 50% or he does 2%, it doesn’t matter, because we know that Powell is going to continue to provide the easy monetary conditions that we need to have our portfolios go up in fiat dollars.”
Trump’s latest tariffs, which have roiled the bitcoin price, crypto and stock markets, are set to hit goods from Canada, Mexico and China from April 2.
Meanwhile, the bitcoin price could be about to rebound toward $90,000, according to 10x Research founder Markus Thielen, who has predicted a combination of Trump’s softening of tariffs and an increasingly dovish Fed is setting bitcoin up for a recovery.
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The bitcoin price has rocketed higher in recent years, with a Federal Reserve flip predicted to push … More
“Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward ‘flexibility’ on the upcoming April 2 reciprocal tariffs, softening his earlier rhetoric,” Thielen wrote in an emailed note.
Thielen pointed to Fed chair Powell’s signal that it would “look past short-term inflationary pressures, laying the groundwork for potential future easing,” Thielen added.
“Powell’s mildly dovish tone suggests that the Fed’s put remains intact, providing further support for a recovery in stock prices.”
