Arthur Hayes has claimed that China is preparing to strengthen its economy with credit, which could support Bitcoin and the overall cryptocurrency market. The co-founder of BitMEX highlighted factors that could allow China to flood the world with yuan credit. The CIO of Maelstrom and former CEO of BitMEX explained that the US monetary policy has created more favorable conditions for Chinese officials to provide significant new credit to the stagnant real estate sector.
Hayes pointed out that the US’s latest policy weakened the dollar by issuing more Treasury bonds. He noted that the drop in the dollar index DXY during November clearly demonstrated the impact of this policy. Arthur Hayes argued that a weaker dollar gave Chinese officials more room to increase yuan printing operations. The expert stated that the yuan could at least remain stable and possibly even appreciate in value.
Hayes said that as the dollar continues to weaken, conditions are developing for the yuan to actually strengthen. The BitMEX founder emphasized that this allows China to significantly increase the amount of onshore yuan credit without weakening their currency.
Arthur Hayes expressed that this global monetary dynamic could benefit Bitcoin and the cryptocurrency market. He highlighted that capital inflows into risk assets via Hong Kong from mainland China are possible. Hayes mentioned that if there is a legal way to move cash from the mainland to Hong Kong, Bitcoin would be one of the many risk assets to be purchased.
The co-founder of BitMEX concluded his words by stating that he plans to focus on cryptocurrency investments rather than investing in US Treasury bonds because of his predictions supporting risk assets. He expressed his desire to invest in cryptocurrencies now, before the data showing where China’s money printing machine is heading becomes clearly apparent.
