Arthur Hayes believes that Chinese money can save Bitcoin
Arthur Hayes sees yuan devaluation as catalyst for Bitcoin rally.
Escalating trade tensions between the United States and China are sending shockwaves through global markets, with Bitcoin emerging as a potential refuge for Chinese capital.
According to BitMEX co-founder Arthur Hayes, a weakening Chinese yuan and harsh U.S. tariff policies could set the stage for renewed interest in BTC from Chinese investors, reports CoinGape.
Bitcoin has already rebounded from a recent low of $74,400, trading above $80,000 at the time of writing, as traders price in uncertainty and await developments on the trade front.
Hayes argues that history could repeat itself. In previous cycles—most notably in 2013 and 2015—devaluation of the yuan coincided with increased capital flight into Bitcoin. With the offshore yuan (USDCNH) nearing five-year lows, Hayes believes Chinese policymakers may soon be forced to intervene, potentially igniting a wave of alternative asset flows. “Yuan devaluation, driven by China’s independent monetary policy, could catalyze another Bitcoin rally as domestic capital seeks shelter,” Hayes noted.
Tariff Escalations Fuel Market Jitters
The rising tension comes amid aggressive trade moves from the U.S. On April 4, President Donald Trump announced plans to impose an additional 50% tariff on Chinese imports, which would bring the total tariffs on Chinese goods to a staggering 104%. The United States imported roughly $439 billion in goods from China in 2023, placing the proposed duties among the largest economic penalties in recent history.
China has been given an April 8 deadline to reverse its existing 34% tariff on American goods or face the full brunt of Trump’s tariff escalation. Beijing, however, has rejected Washington’s demands, stating it will “fight until the end.”
Implications for Crypto and Global Markets
The economic standoff comes as risk assets worldwide face mounting pressure. Bitcoin’s relative resilience—especially when juxtaposed with recent stock market declines—has led some analysts to view it as an emerging macro hedge. If capital controls tighten or the yuan weakens further, crypto markets could see a resurgence of Chinese participation, reminiscent of earlier bull cycles.
While Beijing’s policy trajectory remains uncertain, Hayes’s forecast highlights a potential shift in crypto market dynamics—one increasingly influenced by geopolitical forces and currency maneuvers. Investors are watching closely, with Bitcoin possibly becoming a barometer for Chinese capital sentiment amid ongoing global instability.
Recently we wrote, that Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, is doubling down on Bitcoin amid a turbulent period in the broader crypto market.
