Arthur Hayes, Founding Partner and Chief Investment Officer of Maelstrom, argues that despite US President Trump’s customs duty threats, Bitcoin price rise will continue. Hayes shared these views in a Podcast program.

Customs duties and Powell’s policy

Trump’s Customs duties, which are planned to implement many products such as Canada and Mexican products and Chinese cars, will enter into force on April 2. Markets are involved in anxious attitude towards President Trump’s variable policies. However, according to Hayes, these taxes will not have a significant impact on the markets.

Hayes said that Federal Reserve President Jerome Powell clearly demonstrated his stance on customs duties and US monetary policy last week. According to him, Powell’s approach is a harbinger of good news for crypto investors.

Speaking during Podcast, Hayes said, “The effects of taxes on inflation are temporary.” Powell refers to his statements last week. According to Hayes, Powell can inject more money into the system by citing this situation.

Powell’s ‘Comfortable Money’ Policy

According to Hayes, Trump’s taxes are no longer a problem for Powell and should not be for crypto investors. Hayes said:

“Trump, whether he puts a 50 percent tax or 2 percent, does not matter. Because we know that Powell will maintain comfortable monetary policies that our portfolios need to gain value in Fiat currency.”

This means quantitative expansion, which is considered a positive development for risky assets such as Bitcoin.

According to Hayes, even if Trump taxes increase to 50 percent, Powell’s reaction will be the same: “This is not the real inflation, so we can continue to relax the conditions.”

Bitcoin price future and customs duties discussions

At the beginning of the week, Hayes predicted that Bitcoin’s price would reach $ 110 thousand. This estimate was the opposite of their previous expectations.

Polymarket offers various possibilities about Trump’s customs duties policies:

• The likelihood of entering the EU taxes 81 percent

• 6 percent probability of taxes applied to China until May

• The probability of the taxes applied to Canada within the same period of 22 percent

In addition, the probability of Trump’s national asset fund will be operational within the first 100 days is only 7 percent.

In particular, taxes on China are considered a potential factor for the rise of Bitcoin price. Before the taxes expected to be applied next week, Bitcoin’s price fluctuated between 88 thousand dollars and 85 thousand dollars this week. Currently, 85 thousand 210 dollars are traded.

According to Arthur Hayes, as long as Powell’s loose monetary policies continue, customs duties will not have a permanent impact on Bitcoin. Hayes believes that this is a positive development for crypto markets.