Arthur Hayes, the founder of BitMEX crypto exchange, describes a scenario that could trigger a bull cycle for the digital asset market.
Hayes says in a new one blog post that China could allow its citizens to invest in crypto at a time when there is a hostile climate for digital assets in the United States.
According to the co-founder of BitMEX, the participation of Chinese investors could trigger a rally in the crypto market.
“The return of the Chinese crypto trader through Hong Kong’s financial conduits will revitalize the market while effectively shutting out the penniless American mass-affluent.”
Hayes says the weakening of the world’s second-largest economy will lead to an easing of monetary policy and some of the resources will flow to the crypto market.
“The less the Chinese economy grows, the more credit will be provided. Then the currency will weaken, capital will be able to ‘flee’ to suitable vehicles, and finally the crypto capital markets will get the spark to hopefully start the fall rally.
According to Hayes, China will reduce the amount of assets it holds in the West and this will ultimately benefit Bitcoin investors.
“The mere fact that China is weakening its currency and allowing loyal comrades to buy Bitcoin derivatives in response reduces the amount of Western fiat assets it owns. The more reluctant China is to buy US government bonds with its export earnings or to hold USD (US dollar) assets in any form, the harder the US has to work to keep its citizens’ capital from leaving. .. As the usual buyer of long-term debt, China, goes on strike. It is a positive reflexive relationship that should bring glorious returns to Lord Satoshi’s believers.
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