BitMEX Founder: Federal Reserve or China,s Central Bank Will Spark Bitcoin Boom

Arthur Hayes, the founder of BitMEX, a leading cryptocurrency derivatives exchange, has shared his optimistic outlook on the future of Bitcoin and the broader cryptocurrency market. According to Hayes, the next major upward movement in the price of Bitcoin will likely be triggered by actions taken by either the US Federal Reserve or the People's Bank of China (PBOC), the central banks of the United States and China, respectively.

Hayes’ argument centers on the interplay between global monetary policy and the flow of capital into cryptocurrencies. He suggests that if the US Federal Reserve fails to ease its monetary policy, the potential depreciation of the Chinese yuan could serve as a catalyst for capital inflows into Bitcoin. A weaker yuan, Hayes claims, would prompt Chinese investors to seek alternative stores of value, with Bitcoin being a prime beneficiary due to its limited supply, decentralization, and perceived status as a hedge against fiat currency devaluation.

Hayes also points to historical patterns, noting that periods of yuan depreciation have often coincided with increased demand for Bitcoin among Chinese investors. This trend is particularly relevant given that the yuan has recently reached its lowest level since late 2023, raising concerns about economic instability and prompting investors to explore alternative assets.

Despite the recent volatility in Bitcoin’s price, Hayes remains steadfast in his bullish outlook. He encourages investors to capitalize on price dips, viewing them as opportunities to accumulate more Bitcoin at discounted levels. His sentiment aligns with the long-term narrative that Bitcoin’s scarcity and growing adoption will ultimately drive its value higher.

In summary, Arthur Hayes believes that the actions of the world’s two most influential central banks will play a pivotal role in shaping the next phase of Bitcoin’s growth. Whether through US monetary easing or yuan depreciation, he sees significant upside potential for cryptocurrencies in the near future.