ARTHUR HAYES, the founder of BitMEX, has forecasted that Bitcoin (BTC) is poised to benefit significantly from the ongoing US-China trade war and the broader decoupling of global economies. In a recent interview with FELIX JAUVIN, host of the Forward Guidance YouTube channel, Hayes elaborated on how these geopolitical tensions could drive Bitcoin’s value upward.
Hayes emphasized that governments worldwide may resort to printing money to mitigate the economic fallout from the trade war, a scenario that has historically fueled Bitcoin rallies. “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,” he stated.
He further explained the financial dynamics at play, noting that a reduction in the US current account deficit would necessitate foreign investors selling US stocks and bonds. “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,” Hayes added.
While some analysts speculate that central banks might turn to Bitcoin as a hedge against market volatility, Hayes believes they will continue to favor gold. “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,” he remarked.
At the time of writing, Bitcoin is trading at $94,832, marking a 1.2% increase over the past 24 hours.
Sources: Forward Guidance YouTube Channel