Arthur Hayes predicts China’s QE will fuel Bitcoin’s growth
Arthur Hayes predicts China’s QE will fuel Bitcoin’s growth
Arthur Hayes, co-founder of crypto exchange BitMEX, recently pointed out that China’s latest round of quantitative easing (QE) could spur increased demand for Bitcoin.
According to Hayes, as China injects liquidity into its economy to stimulate growth, this could indirectly benefit Bitcoin and other cryptocurrencies by increasing available capital, which may find its way into digital assets as investors seek alternatives to traditional markets, reports Cryptopolitan.
China’s QE measures, aimed at counteracting slowing economic growth and maintaining stability, involve significant monetary easing, including lowering interest rates and increasing bank lending capacity. Hayes argues that this liquidity boost could lead to inflationary pressures, prompting both institutional and retail investors to consider Bitcoin as a hedge. While China maintains strict controls over cryptocurrency trading within its borders, its citizens and investors still actively participate in global crypto markets through various means, suggesting that any uptick in liquidity might indirectly influence Bitcoin’s demand.
Hayes highlights the appeal of Bitcoin as “hard money,” likening it to digital gold due to its limited supply. He posits that with increased liquidity and concerns over currency devaluation, Bitcoin may become a more attractive option for those seeking a store of value. This perspective aligns with a broader trend of investors turning to Bitcoin as a hedge against economic uncertainties and the potential impacts of prolonged QE on fiat currencies.
China’s actions add to an already complex global economic landscape where central banks in various regions are employing similar strategies to stimulate growth. If Hayes’s predictions hold, Bitcoin’s role as a hedge asset could solidify further, potentially driving up its value as demand rises among those looking for alternatives to inflation-prone fiat currencies.
Hayes’s insights underscore the potential global ripple effect of major economic policies on cryptocurrency markets, and his analysis suggests that Bitcoin could benefit as liquidity increases worldwide. For now, investors will be watching closely to see if China’s monetary policies indeed contribute to renewed interest in Bitcoin.
Recently we wrote, that MetaPlanet, a prominent venture fund specializing in blockchain and cryptocurrency investments, recently announced that it has surpassed 1,000 Bitcoin (BTC) in its holdings, a milestone reflecting the growing interest in cryptocurrency across Asia.
