Arthur Hayes, the founder of BitMEX and the CIO of Maelstrom, stated that Trump is not inherently pro-Bitcoin, as many crypto holders believe.
Arthur Hayes, the founder of BitMEX and the CIO of Maelstrom, stated that Trump is not inherently pro-Bitcoin, as many crypto holders believe. He said it is incumbent upon him to monitor the developments in the crypto sector after the November election.
Nevertheless, the election outcome will not significantly impact the crypto space.
Arthur Hayes Issues a Warning to Crypto Holders
Arthur Hayes, the creator of BitMEX, appeared to criticize Donald Trump in a recent interview with Channel News Asia, asserting that crypto holders mistakenly perceive him as pro-Bitcoin. According to him, no crypto-friendly policies were implemented during Trump’s final term.
He declared:
“I think crypto holders mistakenly believe that trump is pro-Bitcoin. Maybe. However, he was in office for four years and he didn’t enact any positive policies for crypto. Kamala Harris and Joe Biden also didn’t. It’s a watch. We don’t know what they’re going to do but we know that they’re going to print money.
The Trump is going to cut taxes and Kamala will increase welfare payments. And so, the deposit is going to grow. The US government will want to issue more debt, print money to buy it and that could positively impact bitcoin and other crypto assets.”
He noted that policies such as tax cuts or welfare spending could promote Bitcoin and other crypto assets, regardless of whether a Trump or Harris president is elected. This could be achieved through money printing and increased US debt issuance.
If Trump were elected, Hayes stated he would opt for the USD’s feeble policy. In his view, this would significantly favor the prices of oil, gold, stocks, and crypto. Nevertheless, he believes that Kamala Harris would follow the same course of action, and the only issue is the time frame.
China’s stimulus will fuel the Bitcoin boom
Consequently, Arthur Hayes asserts that the US Federal Reserve’s rate is “calm before the storm.” In other words, China continues implementing its stimulus program due to the Federal Reserve’s decision to reduce interest rates, as they desire a robust renminbi. He stated that cryptocurrency would perform exceptionally well in times of conflict.
In a significant policy change, the Federal Open Market Committee (FOMC) recently reduced interest rates by 50 basis points, a departure from the nearly four-year trend of tightening monetary policy.
The potential for this to be the first of multiple reductions, contingent upon future economic conditions, was suggested by Federal Reserve officials, including Chairman Jerome Powell. This easing indicates the Federal Reserve’s dedication to maintaining growth in the face of evolving financial pressures and its willingness to respond to emergent economic challenges.
According to Hayes, Bitcoin’s subsequent surge will be driven by China’s pursuit of economic stimulus, or “quantitative easing.” He further stated that in response to the most severe economic downturn in decades, China is likely to transition from restrictive lending policies, such as the “Three Red Lines” that restrict property developers’ debt, to quantitative easing.
Additionally, he predicted that China would indirectly establish a new support channel for Bitcoin by restoring liquidity in the economy, which would increase the yuan’s international appeal.
Arthur Hayes predicts that inflation will increase in China, and Bitcoin is the optimal hedge. This is due to the country’s intention to inject currency into its economy. The BitMEX founder underscored in an interview earlier this week that inflation frequently results from an increase in the amount of money in circulation, making Bitcoin an increasingly appealing refuge.
Hayes refers to China’s anticipated economic intervention as “monetary chemotherapy,” inferring that Bitcoin could capitalize on the influx of liquidity in the market as individuals seek refuge from devalued currencies.
