Renowned figure Arthur Hayes shared a new perspective with his followers on the X platform. The former CEO of BitMEX claimed that the ongoing devaluation in China would cause billions of dollars to flow into Bitcoin.
Arthur Hayes, who operates a crypto-oriented investment fund called Maelstrom, raised concerns about the potential capital outflow from China, which worsened the pressure on the Chinese yuan (CNY). His analysis primarily focuses on the nearly 15% depreciation of the yuan against the US dollar since the beginning of the year.
This situation sparked speculation about whether China would consider investing billions of dollars in Bitcoin and other cryptocurrencies to protect itself against economic turmoil. Senior figure Arthur Hayes revealed that he asked Chinese researcher Andrew Collie about the best indicator to predict the potential capital flight, and Collie suggested examining the difference between China’s international net export earnings and its official foreign exchange reserves.
The latest data indicates that China’s foreign exchange reserves have increased by roughly $32.407 billion this year, while total net exports have increased by $553.25 billion, suggesting that approximately $520.85 billion has left China.
The former CEO of BitMEX later put forward hypotheses about where this capital could flow, including China buying large amounts of gold, its banks and businesses paying off offshore US dollar debts, or wealthy individuals shifting their wealth abroad due to the impact of the crumbling economy. Arthur Hayes jokingly claimed that China definitely does not buy more US Treasury bonds.
Furthermore, he suggested that the weakening of the Chinese yuan is necessary for China’s exports to remain more competitive than Japan’s, highlighting the relationship between the falling Japanese yen (JPY) and the CNY. Arthur Hayes also expects capital outflow from China to continue increasing. As a result, he implied that some of these funds would be transferred to the cryptocurrency markets, particularly Bitcoin, stating, “Hopefully, some of them will find their way to Lord Satoshi and BTC.”
Last week, prominent Bitcoin investor Federal Reserve and other central banks continued to raise interest rates to stimulate economic tightening or even “print more money,” suggesting that Bitcoin is ready to reach $70,000.