BitMEX founder Arthur Hayes says Bitcoin (BTC) will likely benefit from the ongoing trade war and a US-China decoupling.
In a new interview with the host of the Forward Guidance YouTube channel, Felix Jauvin, Hayes says governments around the world will likely have to print money to offset the impacts of the trade war, which has ignited massive Bitcoin rallies in the past.
“China’s not alone. It’s every major economy needs to print a bunch of money to basically cushion the effects of this attempted divorce, this decline in globalization. But at the end of the day, yeah, they’re going to print money – Bitcoin benefits.
Now the reciprocal of the current account deficit in the US is our financial account surplus. And so all these dollars that got earned, the trillions of dollars that got earned selling stuff to America, got recycled into Treasury bonds and stocks and Mag 7, all the big US tech stocks. So mathematically, if [US President Donald] Trump is serious about reducing the current account to zero, then foreigners have to sell stocks – period. It’s just math.
And then the question is, okay, well, can the US government survive financially if there’s a big decline in capital gains taxes because the market’s not going up? I don’t think so. Therefore, we get a printing money function and Bitcoin benefits. It finally decouples from tech because of the structural flows and what needs to happen from an affordability standpoint for the US government.”
While some in the crypto space suggest the market turmoil may prompt central banks to start accumulating Bitcoin to diversify their asset holdings, Hayes believes central banks will continue to turn to gold as a hedge, not the flagship crypto asset.
“I actually don’t think that they’re mentally prepared for that sort of leap. They understand gold. They’ve been trained in gold. They’ve read history books about gold.”
Bitcoin is trading for $94,832 at time of writing, up 1.2% in the last 24 hours.
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