Arthur Hayes Anticipates Surge of Chinese Capital Into Bitcoin
Arthur Hayes, co-founder of BitMEX, expects potential capital outflows from China into Bitcoin as the Chinese yuan faces possible devaluation — a scenario reminiscent of market dynamics in 2013 and 2015.
Growing tensions in the ongoing US-China trade war have unsettled global markets. Amid this uncertainty, Arthur Hayes believes that Chinese investors could soon turn to Bitcoin. At the time of writing, Bitcoin (BTC) has recovered from its recent dip to $74,400 and is now trading above $80,000. Investors remain cautiously optimistic, awaiting progress in trade negotiations while navigating the market’s volatility.
Why Arthur Hayes Believes Chinese Capital Might Flow Into Bitcoin
In a recent analysis, Arthur Hayes highlighted that Bitcoin could become a refuge for Chinese capital in the event of a yuan (CNY) devaluation. This trend mirrors past instances from 2013 and 2015, when similar economic pressures in China led investors to seek safety in BTC. The offshore yuan (USDCNH) is now nearing five-year highs, intensifying speculation about potential policy adjustments from Chinese authorities.
Hayes elaborated on the connection between a weakening yuan and Bitcoin’s appeal. He explained that China’s potential devaluation, driven by its independent monetary strategy, may be a deliberate move by President Xi Jinping to preserve the nation’s economic edge. This, according to Hayes, creates a favorable environment for Bitcoin adoption, as investors look for alternatives amid the depreciating yuan.
While there is skepticism about whether China will take drastic steps to devalue its currency, recent movements in the yuan suggest that policymakers may intervene to stem further losses.
US-China Trade War Reaches New Heights
The intensifying trade conflict between the United States and China shows no signs of slowing down. US President Donald Trump has announced a significant escalation, proposing an additional 50% tariff on Chinese imports. This would bring the total tariffs on goods from China to a staggering 104%, factoring in existing levies of 20% and 34%.
Currently, the United States imports approximately $439 billion worth of goods from China each year. President Trump has set a deadline of April 8 for China to roll back its 34% tariff on American goods. Failure to do so, he warned, will trigger further economic measures. In response, Chinese officials have vowed to resist, pledging to “fight until the end” against these proposed tariffs.
Bitcoin Price Outlook: What’s Next?
Bitcoin has recently demonstrated resilience by bouncing back from critical support levels, as indicated by its falling wedge pattern. BTC is presently trading 4.54% higher at $80,336, with daily trading volumes surging by 85% to over $86 billion.
Market analysts suggest that Bitcoin may soon challenge the key resistance level of $85,000 — a threshold that could prompt increased selling pressure. Prominent crypto analyst Rekt Capital has also weighed in, noting that Bitcoin may be forming a market bottom amid ongoing corrections. He points to historical patterns in Bitcoin’s daily Relative Strength Index (RSI) as supporting evidence.
Rekt Capital believes that the current price zone, stretching down to approximately $70,000, could mark the lower boundary of Bitcoin’s recent downturn. According to BTC price prediction models, Bitcoin is expected to hover around the $77,000 level over the next month.
