As global markets brace for a new wave of U.S. tariffs, the cryptocurrency sector is feeling the tremors. Former BitMEX CEO Arthur Hayes has issued a cautionary note to crypto investors, highlighting the potential for increased volatility as Donald Trump signals a return to unilateral trade measures.
Market Jitters as Tariff Clock Ticks Down
Donald Trump’s announcement of upcoming unilateral tariffs—just after a fragile U.S.-China trade deal—has reignited concerns about global trade stability. The immediate reaction has been a broad sell-off: U.S. and European equity futures have slipped, the dollar has weakened, and gold prices are climbing as investors seek safe havens. Treasury yields are also falling, underscoring a risk-off mood across financial markets.
Crypto Not Immune: Bitcoin and Altcoins Slide
The crypto market, often seen as a hedge against traditional finance, is not escaping the turbulence. Bitcoin, which started the week on a strong note, has dropped below the $110,000 mark, now trading near $107,750. Altcoins are following suit, with Dogecoin leading losses among the top ten, down 7% in just 24 hours. Even a softer-than-expected U.S. inflation reading failed to lift sentiment, as traders grow wary of mounting macroeconomic uncertainty.
Arthur Hayes: “Don’t Get Shook”
Arthur Hayes took to X (formerly Twitter) to warn traders: “Don’t get shook.” He predicts that the coming days will bring heightened volatility to crypto markets as the impact of Trump’s tariff strategy ripples through global finance. Hayes has long argued that a shift from the Federal Reserve’s current quantitative tightening to a more accommodative stance could eventually benefit crypto, but with inflation still a concern, such a pivot appears distant.
Broader Trade Moves Add to Uncertainty
The Trump administration is also pursuing new bilateral trade deals with major economies like India, South Korea, and Japan. While these moves aim to strengthen the U.S. economic position, they risk further escalating global trade tensions—adding another layer of uncertainty for investors across asset classes, including crypto.
What’s Next for Crypto Investors?
With the July 9 tariff deadline approaching, all eyes are on how markets will react. Hayes’ message is clear: expect more turbulence, but don’t let short-term volatility shake your long-term conviction. As the global financial landscape shifts, crypto traders should stay alert and be prepared for rapid market moves.
