Arthur Hayes, founder of BitMEX and Maelstrom CIO, said Trump is not necessarily pro-Bitcoin, as most crypto holders think. He said it’s up to watch what will happen after November election regarding crypto.
However, he believes that, whoever wins the Election – won’t impact cryptospace too much.
Arthur Hayes Warns Crypto Holders: Don’t Mistake Trump as Pro-Bitcoin
In a recent interview with Channel News Asia, BitMEX founder Arthur Hayes seemingly slammed Donald Trump saying crypto holders mistakenly view Trump as pro-Bitcoin. According to him, during Trump’s last tenure there was no crypto-friendly policies brought.
He stated:
“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 regardless of a Trump or Harris presidency, money printing and increased US debt issuance could ultimately boost Bitcoin and other crypto assets, driven by policies like tax cuts or welfare spending.
My recent interview with @ChannelNewsAsia pic.twitter.com/yLnkcQaOnG
— Arthur Hayes (@CryptoHayes) October 31, 2024
Hayes added that, if Trump was to be elected, he would choose to go with the weak USD policy. That, in his opinion, would be very positive for crypto, gold, stocks and even oil prices. However, he thinks Kamala Harris would do exactly the same and it’s just the question of timeframe.
China’s Stimulus Will Fuel Bitcoin Boom
Arthur Hayes, therefore, claims US Fed rate is “calm before the storm”. Meaning, because Fed is cutting rates, China is going on with it’s stimulus because they want strong yuan. He said crypto would do very well in war-situation.
In a significant policy shift, the Federal Open Market Committee (FOMC) recently lowered interest rates by 50 basis points, marking a departure after nearly four years of tightening monetary policy. Federal Reserve officials, including Chairman Jerome Powell, suggested this could be the first of several cuts, contingent on future economic conditions. This easing signals the Fed’s responsiveness to emerging economic challenges and its commitment to sustaining growth amid evolving financial pressures.
China’s race for economic stimulus or “quantitative easing” will, says Hayes, power Bitcoin’s next surge. He added that confronting the worst economic slump in decades, China is likely to shift policy from tight lending policies like the “Three Red Lines” capping property developer debt to quantitative easing.
He also projected that, by getting the economy liquid again, China will be indirectly creating a new support channel for Bitcoin, with the increasingly circulating yuan boosting Bitcoin’s appeal globally.
With China gearing up to inject cash into its economy, Arthur Hayes sees inflation on the rise—and Bitcoin as the ultimate hedge. In an interview earlier this week, the BitMEX founder emphasized that more money in circulation often leads to inflation, making Bitcoin an increasingly attractive haven.
Hayes calls China’s expected economic stimulus “monetary chemotherapy,” predicting that as liquidity floods the market, Bitcoin could benefit as people seek protection from devalued currencies.
China’s QE Won’t Sink the Yuan, But It Could Propel Bitcoin
The unique position of China means that, unlike most other countries, its currency will not collapse under quantitative easing the way others might.
China benefits from a trade surplus and resource purchase deals with countries like Russia and Saudi Arabia that support the yuan’s value even as more cash goes into the economy. This should have boosted exports, but instead, China’s trade surplus has reached record levels, reducing imports and producing goods more domestically. Energy purchases in yuan insulate China from dollar turbulence, while leverage keeps its currency steady.
That structure allows China to flood its economy with liquidity, as it is doing, without exposing it to a currency crisis – a stability Arthur Hayes believes will make the use of Bitcoin as a hedge appealing to China’s elite.
As he said, no one country’s economic policies can cap Bitcoin, making it a haven during periods of inflation. Moreover, Hayes believes that China’s wealthy will soon look to Bitcoin as a reliable store of value in inflationary times.
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