Arthur Hayes Predicts Factors to Boost Bitcoin's Price This Year

Arthur Hayes, co-founder of BitMEX, suggests that China's monetary expansion could lead wealthy investors to Bitcoin. This scenario may echo the 2015 trend following the yuan's devaluation, resulting in significant cryptocurrency growth.

Bitcoin as a Hedge Against Currency Devaluation

In his recent blog post, Hayes emphasizes that despite restrictions, cryptocurrency trading remains active in mainland China via peer-to-peer networks on platforms like Binance and OKX. He notes Bitcoin's strong performance during monetary expansions, highlighting its rise from $135 to $600 in late 2015 after the yuan's devaluation.

Hayes argues that the Chinese government's ban on direct Bitcoin/CNY trading pairs aims to prevent Bitcoin from being a visible indicator of currency devaluation, while crypto ownership remains legal. He predicts that the anticipated monetary expansion will drive affluent Chinese investors to Bitcoin as a hedge against devaluation, although this transition may take time.

China's Proposed Debt Package

Hayes’ insights come as reports indicate that China is considering injecting approximately $1.4 trillion into the economy through a substantial debt issuance, including 6 trillion yuan in special sovereign bonds. This fiscal package aims to revive the struggling economy and could gain further momentum depending on the outcome of the U.S. presidential election.