Bitcoin could potentially benefit from the escalating trade dispute between the United States and China, with experts suggesting that aggressive monetary policies, such as currency devaluations, could lead to increased adoption of the cryptocurrency. Arthur Hayes, co-founder of BitMEX, believes that devaluing the Chinese Yuan could spark renewed interest in Bitcoin as investors look for ways to safeguard their assets outside of the traditional financial system. Drawing on historical precedents from 2013 and 2015, Hayes predicts that 2025 could see another surge in capital flowing into the crypto market, particularly from Chinese investors seeking to mitigate currency risks.
To support Hayes’ outlook, Bybit CEO Ben Zhou also highlighted the correlation between yuan devaluation and increased demand for Bitcoin. Zhou explained that in response to US tariffs, China may choose to weaken the CNY, historically leading to a rise in capital inflows into Bitcoin. This strategy may make Chinese exports more competitive globally by lowering their costs, but it could also result in capital flight and drive interest towards alternative assets like Bitcoin.
The ongoing trade war between the US and China has stoked tensions, with both countries imposing tariffs on each other’s goods. President Trump’s decision to levy tariffs on Chinese imports, met with retaliatory measures from China, has created a climate of uncertainty. In response, Hayes suggests that major global powers may start accumulating neutral assets like Bitcoin, a move that could potentially serve as a significant price catalyst and drive Bitcoin’s value towards $1 million in the long term.
In conclusion, the intensifying trade conflict between the US and China could potentially be advantageous for Bitcoin, especially in light of currency devaluations and capital flight risks. As experts like Arthur Hayes and Ben Zhou predict, Chinese investors and other global powers may increasingly turn to Bitcoin as a safe haven asset amidst economic uncertainties. This could potentially lead to a surge in capital inflows into the crypto market and drive Bitcoin’s value higher in the coming years. As the trade war continues to unfold, it will be interesting to see how Bitcoin and other cryptocurrencies fare in response to these geopolitical developments.
