As tensions escalate between the U.S. and China due to new tariffs, BitMEX co-founder Arthur Hayes believes Bitcoin and other cryptocurrencies might benefit from the situation. On X (formerly Twitter), Hayes suggested that China’s likely response could involve devaluing the yuan, potentially triggering a shift of capital into cryptocurrencies—a trend seen in past Chinese economic stress periods. Hayes pointed out that similar scenarios in 2013 and 2015 led to Bitcoin bull runs.
The recent U.S. move involves a 34% tariff on Chinese imports, to which China has responded with identical tariffs, calling the U.S. action “economic blackmail.” This has unsettled global markets and prompted a strategic rethink by China’s central bank. Hayes argues that a yuan devaluation would be a logical Chinese response that could drive more investors to Bitcoin, a sentiment echoed by Bybit CEO Ben Zhou.
Bitcoin itself is experiencing volatility, with a recent 9.1% drop touching a five-month low at $74,500 before a slight rebound. Analysts are divided on its trajectory, with some predicting a possible drop to $70,000. Despite these fluctuations, Bitcoin remains a focal point amid the trade tensions.
Meanwhile, China is framing its defiance of U.S. tariffs as a chance to showcase resilience and strengthen its position. Official statements indicate that China might use monetary policy, such as further yuan devaluation, to counteract U.S. measures. If this unfolds, as Hayes predicts, Bitcoin could once again become a refuge for capital escaping currency depreciation.
