Arthur Hayes, co-founder of BitMEX, remains unfazed by Bitcoin’s recent drop, eyeing potential catalysts that could revive its price: the U.S. Federal Reserve or China’s central bank. Hayes believes if the U.S. doesn’t ease monetary policy, China’s yuan devaluation might drive capital into Bitcoin.
### Bitcoin’s Fate Tied to Central Bank Moves
In a series of posts on X, Hayes suggested that either the Federal Reserve or the People’s Bank of China (PBOC) could trigger the next cryptocurrency surge through currency manipulation, capital flight, or monetary easing. He noted that past yuan devaluations have pushed Chinese investors towards Bitcoin, citing instances in 2013 and 2015 as examples, and suggesting a repeat could occur by 2025.
Bybit CEO Ben Zhou echoed this view, stating that whenever the RMB drops, Chinese capital flows into Bitcoin, which could be bullish for the cryptocurrency. Recently, the yuan weakened past 7.20 per dollar, with PBOC setting its daily fixing at 7.2038 amidst an intensifying trade war with the U.S. This move sparked discussions online, with some commentators emphasizing the potential impact on Bitcoin, while others remained skeptical.
### Rollercoaster Week for Bitcoin
Bitcoin has experienced significant volatility recently, swinging from $81,500 to $88,500 before dropping to $74,000. The decline followed U.S. President Donald Trump’s threat to increase tariffs on Chinese imports. Although rumors of a delay in imposing taxes momentarily boosted prices, the news was quickly debunked, causing Bitcoin to fall further. Despite this, Hayes encouraged investors to buy the dip.
Currently, Bitcoin is trading just below $79,000, reflecting a 4.2% gain in the past 24 hours. However, it remains 8.1% down over the past month and 5.3% down in the last week, slightly outperforming the broader crypto market, which saw a nearly 9% decline in the same period.
