Arthur Hayes warns of crypto market turbulence as Trump’s July 9 unilateral tariffs could spark volatility, impacting Bitcoin and altcoins.
Arthur Hayes, the CEO of BitMEX, predicts that the crypto market will experience significant volatility in the near future due to US President Donald Trump’s impending introduction of unilateral tariffs before the July 9 deadline. Despite the recent progress in the US-China trade agreement, the market has already experienced some selling pressure in the past 24 hours. Additionally, the Bitcoin price has been unable to surpass the $110,000 resistance level due to the US CPI print being lower than anticipated.
Arthur Hayes Issues Warning Regarding Crypto Market Volatility
The crypto market commenced the week on a high note as Bitcoin pursued the Global M2 money supply. Nevertheless, the BTC price encountered a critical rejection at $110,000, as bulls could not generate sufficient momentum to propel the cryptocurrency to new all-time highs.
Arthur Hayes cautions that the cryptocurrency market may experience volatility in the coming weeks in response to the unilateral tariffs implemented by the Trump administration. In a message posted on the X platform, Hayes advised, “Do not become agitated.”
In the past two months, crypto movements and other risk-on assets have been influenced by the Trump tariff conflict and global macro uncertainty. The market initially responded positively to the US-China agreement but could not gain sufficient momentum to sustain the upward trend.
Arthur Hayes stated that it is time for the Federal Reserve to transition from quantitative tightening (QT) to quantitative easing (QE). Nevertheless, the most recent US CPI data indicates that inflation concerns are imminent, and any anticipation of Fed rate cuts has diminished even further.
The markets are in a state of turmoil as a result of Trump’s tariff plan
Bloomberg reported that US President Donald Trump has reiterated his intention to impose unilateral tariff rates within the next one to two weeks, thereby reigniting trade tensions shortly after the U.S.-China agreement.
The announcement resulted in a decline in global markets, with both European and US equity futures experiencing a decline. Additionally, the dollar experienced a decline in value as investors transitioned to haven assets. At the same time, gold prices rose, and treasury yields decreased, indicative of the increased apprehension among crypto market traders.
Furthermore, the Trump administration is negotiating bilateral agreements with other significant economic partners, including Japan, South Korea, and India.
Bitcoin’s price is down 1.66% today, trading at a $107,750 level, while altcoins have declined similarly. Among the top ten cryptocurrencies, Dogecoin (DOGE) has experienced the most significant decline, with a 7% decrease.