BitMex Co-founder Arthur Hayes Thinks Chinese Capital will Flow into Bitcoin

BitMEX co-founder Arthur Hayes thinks Chinese capital could soon seek refuge in Bitcoin, a sentiment amplified by the recent rebound in BTC prices from lows of $74,400 to over $80,000 as of the time of writing. Investors remain cautiously optimistic, hoping for a resolution in trade negotiations while navigating the prevailing market uncertainty.

The escalating trade war between the United States and China has injected considerable volatility into global markets, prompting speculation about potential shifts in capital flows, particularly concerning Bitcoin.

Meanwhile, President Donald Trump is sticking to his tariff plans in the US, especially against China, as the two countries’ trade war worsens. Trump plans to add a 50% tariff on Chinese goods, raising the total to 104%. This includes the existing 20% and 34% tariffs plus the new one.

Hayes previously predicted that Bitcoin might hit $110,000 soon. But he also thinks it could drop to about $76,500. Hayes’ good outlook comes from the idea that the Federal Reserve will switch from stricter to easier money rules for U.S. Bonds.

Moreover, Hayes thinks this change will really help Bitcoin’s price. He also believes the current tariff wars around the world are just “short-term inflation” and won’t stop Bitcoin from going up as expected.

Bitcoin Price Action Edges on Recovery

Based on technical analysis, Bitcoin’s outlook looks good. It bounced back from a key support level, showing a falling wedge pattern. It’s now trading at $80,336, up 4.54%, with daily trading volume jumping 85% to over $86 billion. Bitcoin may try to reach the $85,000 resistance level but could face selling pressure there.

Worries about global money trends continue, and what China might do with Bitcoin is still important. Hayes thinks that if the Chinese Yuan (CNY) loses value, money could flow into Bitcoin, like in 2013 and 2015. The $USDCNH exchange rate is near a five-year high, so people are wondering if China might change its policies.

Crypto analyst Rekt Capital also says Bitcoin may be forming a bottom during the current market drop. This is based on past Bitcoin’s daily Relative Strength Index (RSI) patterns. Rekt Capital thinks the current price, possibly down to $70,000, is likely the bottom of this downturn.

Hayes adds that a weaker Yuan could help Bitcoin. He believes China’s President Xi Jinping is using an independent money policy to weaken the Yuan and make their economy more competitive. This could be good for Bitcoin, as Chinese money looks for other places to invest.