China's response to comprehensive trade definitions in America can lead to a capital flight to Bitcoin and Crypto, according to Bitmex Founder Arthur Hayes.
“If the Federal Reserve (Federal Reserve) is not, PBOC (Popular Bank of China) will give us yahtzee components,” Hayes said on April 8 on April 8, referring to the catalyst for the resumption of urine encryption components.
Hayes said that if the Chinese Central Bank has reduced the value of its currency, which is the yuan, “the narration (is) that the Chinese capital trip will flow to Bitcoin,” adding that it “worked in 2013, 2015, and it can work in 2025.”
The co -founder and CEO of BYBIT, Ben Chu, said that China will try to reduce the yuan to counter the customs tariff, adding that it is historically, whenever the yuan decreases, “a lot of Chinese capital flows to BTC”, which is bullish for Bitcoin (BTC).
The yuan has weakened against Greenback since 2022. Source. Google Financing
China has reduced the yuan value by almost 2 % against the US dollar, which witnessed the largest decrease for decades in August 2015. Bitcoin has witnessed some increasing attention during this period, despite discussing the direct cause.
When the yuan decreased below 7: 1 symbolic against the US dollar in August 2019, Bitcoin also witnessed an increase in prices in the same time frame. Some analysts suggested that Chinese investors were using bitcoin as a hedge, as the original jumped by 20 % in the first week of that month.
In 2019, the Crypto Grayscale Asset Director noticed consumption in the Chinese yuan in his percentage as a worker stimulating bitcoin markets at that time.
Avoid controlling currency and maintaining wealth
The wealthy Chinese citizens may have used encryption in the past to maintain their wealth, move it beyond access to the government, and avoid capital and restrictions inside the country, according to analysts.
It is also believed that the disintegration of the currency also harms confidence in central banks and government financial management, pushing people towards decentralized alternatives such as bitcoin.
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On April 7, the US President pledged to raise an additional tariff against China, which she responded by saying, “You will fight to the end.”
“If the United States is carrying out escalating tariff measures, China will take firm measures to defend its own interests,” the Chinese Ministry of Commerce He said In a statement.
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