Chinese Capital Could Drive Bitcoin’s Rise, Says BitMEX Co-Founder

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BitMEX co-founder Arthur Hayes suggests that capital from China could flow into Bitcoin due to the country’s regulated crypto exchanges and brokers in Hong Kong. He highlights that Bitcoin is a Chinese phenomenon, with many of the largest Bitcoin miners originating from China. Chinese clients have dominated global spot trading flows, and if there is a legal way to move cash from mainland China to Hong Kong, Bitcoin will be one of the risk assets that will be purchased. Hayes also discusses the Chinese government’s efforts to shift the country’s economy from supply-led to demand-led, which has led to firms borrowing money offshore and driving up the value of the US dollar. However, this trend may reverse as the Chinese banking system provides more plentiful yuan credit, potentially leading to a decrease in the price of credit and an increase in the value of fixed supply assets like Bitcoin and gold. This macro pillar of bullishness does not require Chinese firms and wealthy individuals to buy Bitcoin directly, as the fungible nature of global fiat credit will dictate that the marginal fiat dollar flows into hard monetary assets like Bitcoin.

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