Why Bitcoin Could Soar Thanks to China’s Currency Woes! 🚀💰

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In the grand theater of life, where the curtains of fate are drawn by the hands of men, the stage is set for a curious spectacle. The trade war, that tempestuous beast, has unleashed its fury upon the crypto markets, leaving Bitcoin, that elusive digital gold, gasping for breath. Yet, amidst the chaos, Arthur Hayes, a sage of the blockchain, sees a glimmer of hope—a catalyst that the weary investors have overlooked, like a forgotten penny on the sidewalk.

Since its dizzying heights in January, Bitcoin has plummeted, losing more than half a trillion dollars in market cap, a sum so staggering it could make a banker weep. The culprit? The specter of Donald Trump’s trade war, casting long shadows over the market. But on that fateful Tuesday, April 8, Hayes, the co-founder of BitMEX, stood up and proclaimed that these tariffs might just be the secret sauce for Bitcoin’s revival.

If not the Fed then the PBOC will give us the yachtzee ingredients.

CNY deval = narrative that Chinese capital flight will flow into $BTC.

It worked in 2013, 2015, and can work in 2025.

Ignore China at your own peril.

— Arthur Hayes (@CryptoHayes) April 8, 2025

With a keen eye, Hayes scrutinizes the tariffs’ toll on the Chinese yuan, which, on that very day, hit lows not seen in 2023, trading at a dismal 7.31 to the dollar. This decline, a direct result of the fears swirling around the US tariffs, has left many a Chinese investor in a quandary. What to do when your currency is sinking faster than a lead balloon? Why, seek refuge in Bitcoin, of course! It’s the digital life raft in a sea of inflationary despair.

Hayes recalls the echoes of 2013 and 2015, when the yuan’s devaluation sent investors scrambling toward Bitcoin like moths to a flame. The past, it seems, has a way of repeating itself, and those who ignore the lessons of history do so at their own peril.

How China affects Bitcoin’s price

Ah, China—the land of dragons and digital currency dreams. Historically, it has been a veritable goldmine for Bitcoin, with many viewing the asset as a bulwark against a depreciating yuan. Back in 2013, as the People’s Bank of China loosened its monetary grip, Bitcoin surged, trading at a mere 6.12 per dollar. Fast forward to today, and we find ourselves at 7.31, a stark reminder of how quickly fortunes can change.

In August 2015, the central bank, in a fit of economic desperation, devalued the yuan by over 3% in a single day, sending Bitcoin’s price soaring from $200 to $500 by November. It’s a classic tale of monetary policy and market reaction, a dance as old as time itself.

Yet, let us not forget that Bitcoin is not the only shiny object in the treasure chest for Chinese investors. Gold, that timeless metal, has been gleaming brightly, showing consistent price increases throughout the year. And with legal uncertainties and tight regulations looming like dark clouds, many ordinary investors may find themselves hesitant to dive into the Bitcoin pool.

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2025-04-08 16:10