China’s tariff tango might just send cash spiraling into crypto once more—enter BitMEX founder Arthur Hayes with a cheeky twist. According to Hayes, if the Fed doesn’t stir the pot, the People’s Bank of China (PBOC) will serve up the perfect Yahtzee ingredients to reignite the Bitcoin bull market.
On April 8, Hayes fired off a tweet on X explaining that if China devalues its currency, the yuan, you can bet that Chinese capital flight will flow straight into Bitcoin. “It worked in 2013, 2015, and can work in 2025,” he quipped, suggesting that the yuan’s wobble might just be the spark needed to light up the crypto scene once again.
Not to be outdone, Bybit co-founder and CEO Ben Zhou chimed in, predicting that China will indeed lower the yuan to counter the tariff blow. He noted that every time the yuan takes a dip, governments giving Bitcoin a bullish boost.
A quick look back shows history’s been kind to this theory. For instance, China devalued the yuan by nearly 2% against the US dollar back in August 2015—a move that triggered one of the largest single-day drops in decades. And then in August 2019, when the yuan slid below that symbolic 7:1 mark against the USD, Bitcoin’s price soared, with some analysts pointing to a 20% jump in its first week as Chinese investors used Bitcoin to dodge currency depreciation woes.
Analysts have long argued that wealthy Chinese citizens have turned to crypto to safeguard their fortunes, sidestepping capital controls and government restrictions. With central banks losing trust and governments financial maneuvering under the microscope, decentralized alternatives like Bitcoin are sounding pretty attractive.
Meanwhile, the tariff drama isn’t cooling off. On April 7, the US president vowed to step up additional tariffs against China, prompting China to fire back, declaring it “will fight to the end” and promising resolute countermeasures to defend its interests.
HODL Team
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
