According to the founder of Bitmex Arthur Hayes, China’s reaction to America’s common trade tariffs can cause a capital flight to Bitcoin and Crypto.
“If not Fed [Federal Reserve]Then PBOC [People’s Bank of China] He will give us the ingredients of Yahtzee, “Hayes said on October 8 on the catalyst needed to resume the cryptocurrency Bull Run.
Hayes said that if the Chinese central bank devals its currency, Juan, “narrative [is] This Chinese capital flight will flow into Bitcoins, “adding that” it operated in 2013, 2015 and can operate in 2025 ”
Co -founder and general director of Bybit, Ben Zhou, said that China would try to lower Juan to counteract the tariff, adding it historically whenever Juan falls: “Many Chinese capital flows into BTC”, which is stubborn for Bitcoin (BTC).
Juan has weakened against green turnover since 2022. Source. Google Finance
China devaluated Juan by almost 2% compared to the American dollar, which recorded the largest one -day decrease in decades in August 2015. Bitcoin observed some increased interest in this period, although direct causative relations are debated.
When Juan fell below the symbolic indicator 7: 1 compared to USD in August 2019, Bitcoin also noted the augment in prices at the same time. Some analysts suggested that Chinese investors used bitcoins as security because he jumped by 20% in the first week of this month.
In 2019, Grayscale, a Crypto Asset resource manager, noticed depreciation in Chinese Juan, assigning it as a factor stimulating bitcoin markets at that time.
Avoiding currency control and preservation of wealth
According to analysts, wealthy Chinese citizens could exploit crypto in the past to keep their wealth, go beyond the government’s reach and avoid capital control and limitations in the country.
It is also believed that currency devaluation also harms trust in central banks and government financial management, pushing people into decentralized alternatives such as Bitcoin.
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On April 7, the US President promised to raise additional tariffs against China, which said, stating that he would “fight to the end.”
“If the US is implemented with escalated tariff means, China will definitely take remedies to defend their own interests”, Chinese Ministry of Trade he said in a statement.
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