Hayes: Chinese Tariff Retaliation May Spark New Wave of Crypto Capital
Original Title: China's tariff response may mean more capital flight to crypto: Hayes
Original Author: Martin Young, CoinTelegraph
Original Translation: Deng Tong, Golden Finance
BitMEX co-founder Arthur Hayes said that China's response to the U.S. full trade tariffs may lead to capital flight to Bitcoin and cryptocurrency.
"If not the Fed, then the PBoC will be providing us the material for a Yahtzee," Hayes said on X on April 8, referring to the catalyst needed to reignite the cryptocurrency market bull run.
Hayes stated that if the Renminbi depreciates, "capital will flow into Bitcoin," adding that "it worked in 2013, 2015, and will work in 2025 as well."
Bybit co-founder and CEO Ben Zhou stated that China will attempt to lower the Renminbi exchange rate in response to tariffs, adding that historically, a Renminbi devaluation has been favorable for Bitcoin.
Renminbi vs. USD has weakened since 2022. Source: Google Finance
In August 2015, China devalued the Renminbi against the USD by nearly 2%, marking the largest single-day drop in decades. During this time, Bitcoin did attract some investor interest, although the direct cause-effect relationship remains debated.
When the Renminbi exchange rate broke the symbolic 7:1 mark against the USD in August 2019, Bitcoin's price also surged during the same period. Some analysts believe Chinese investors were using Bitcoin as a hedge, as the asset saw a 20% rise in the first week of that month.
In 2019, cryptocurrency asset management firm Grayscale noted the Renminbi depreciation and attributed it as one factor stimulating the Bitcoin market.
Avoiding Currency Control and Wealth Preservation
According to analysts, affluent Chinese citizens may have used cryptocurrency in the past to preserve wealth, shielding it from government control and evading domestic capital controls and restrictions.
People also believe that currency devaluation will undermine people's trust in central banks and government financial management, prompting them to turn to decentralized alternatives such as Bitcoin.
On April 7, U.S. President Trump threatened to impose additional tariffs on China, to which China responded by stating that it would "fight to the end."
The Chinese Ministry of Commerce stated in a declaration: "If the U.S. implements tariff escalation measures, China will resolutely take countermeasures to defend its own interests."
You may also like
Why does OKX want to start a new company with the parent company of the New York Stock Exchange?
The interim executive director of the Ethereum Foundation speaks out: What is our mission?
Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
Tidal Investment: We still have a positive outlook on the AI industry chain, but the reasons have changed
Former SpaceX engineer reconstructs the financial execution system using first principles
Why Is PAXG Price Different From Gold? 5 Reasons Crypto Traders Should Know
The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough
WEEX OpenAPI 101: 5 Powerful Modules, AI Trading Tools, and Grab Up to 70% Revenue Opportunities
Learn how WEEX OpenAPI connects traders, developers, AI agents, and trading platforms. Discover WEEX API features, Binance-compatible integration, automated trading workflows, revenue opportunities, and ecosystem possibilities.
Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies
Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends
Interview with NDV Founder Jason Huang: Popping the AI Bubble and the Myth of Microstrategy, Seeking the Ultimate Ace in the Crypto Market
Morning Report | Former Ethereum Foundation researcher establishes Ethlabs; EU Parliament Economic Committee passes digital euro regulatory proposal
Dragonfly partner Haseeb: The fastest-growing companies in the future may all be stuck at 149 people
How xBubble Breaks the Deadlock in VC's Heavy Investment in the OPC Economy
The encrypted unicorn Blockstream is deeply embroiled in a serious fraud case
Morning Report | The South Korean Financial Services Commission plans to expand the regulatory sandbox to include virtual assets; the parent company of the New York Stock Exchange, ICE, has reached a partnership with OKX to jointly establish a cryptocu...
Exclusive Interview with Strategy CEO: Putting Aside the Sale of 32 BTC, the 60 Trillion AI Intelligence is the Ultimate Fate of Bitcoin
TRON revitalizes the image of the bull, creating a more approachable brand character
Why does OKX want to start a new company with the parent company of the New York Stock Exchange?
The interim executive director of the Ethereum Foundation speaks out: What is our mission?
Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
Tidal Investment: We still have a positive outlook on the AI industry chain, but the reasons have changed
Former SpaceX engineer reconstructs the financial execution system using first principles
Why Is PAXG Price Different From Gold? 5 Reasons Crypto Traders Should Know
