As Bitcoin approaches the $84,000 mark, altcoins are experiencing significant downturns. Recent PCE data suggests that this decline in cryptocurrencies may accelerate in the near future. In parallel, U.S. stock markets are seeing losses that surpass 1%, contributing to a state of stagnation in digital assets. Traders are anticipating distressing surprises that could drive billions in short positions to liquidation.
What Are Hayes’ Predictions for Cryptocurrency?
How Will Tariffs Impact the Crypto Market?
As key tariffs imposed by Trump on imports begin on April 2, the market is rife with uncertainty. Despite this, Arthur Hayes expresses a positive outlook, asserting that these tariffs will not pose a significant threat to the crypto market. He argues that Federal Reserve Chairman Powell has indicated that favorable conditions for cryptocurrencies are on the horizon.
“April will mark a turning point for the crypto market. Trump’s tariffs? They won’t stop the Fed! The money printer will keep running, meaning a new wave of liquidity is on the way.”
In light of Powell’s recent comments about the temporary nature of tariff-induced inflation, Hayes reinforces this viewpoint. He contends that whether tariffs are set at 50% or just 2% is irrelevant, as the Fed will still maintain supportive financial conditions to boost investments.
The U.S. stock market is undergoing a downturn, and the PCE data is proving unfavorable. With trading volumes declining and uncertainty looming, the potential for further market drops is real. China’s threats of retaliation against the new tariffs add to the instability.
Hayes projects that Bitcoin could reach as high as $110,000 in the near future, especially as precise tariff details are anticipated by early April. While the markets might adapt to the tariffs, the pervasive uncertainty remains a formidable challenge, with a true recovery likely to be observed shortly after April 2-3.
- Bitcoin nearing $84,000 while altcoins decline.
- Hayes optimistic about future crypto performance.
- Tariffs seen as non-threatening for market recovery.
- April could signal a pivotal moment for cryptocurrencies.
