Arthur Hayes, co-founder and CEO of BitMex, says China’s response to President Trump’s tariffs will trigger the Bitcoin (BTC) bull cycle. Several countries are adjusting to recent tariffs imposed by the United States, with a key focus on China and the European Union. In the wake of rising tensions, industry analysts have rolled out a growth plan for Bitcoin and other altcoins. Arthur Hayes Backs Bitcoin Recovery In a recent social media post, Hayes stated that the People’s Bank of China (PBOC) will give Bitcoin the necessary ingredients for a bull recovery in its response to Trump’s tariffs. This might be the case if China devalues its currency, leading to fund flows to the crypto market. According to him, China has fueled fund flows through this in 2013 and 2015. “ If not the Fed then the PBOC will give us the yachtzee ingredients. CNY deval = narrative that Chinese capital flight will flow into $BTC. It worked in 2013 , 2015, and can work in 2025. Ignore China at your own peril.” Other digital asset executives also hinted that China will likely devalue the yuan to limit the impact of the tariffs. Globally, the central bank’s move to devalue local currencies propels consumers to digital assets to protect value. This goes to Bitcoin’s use case as a store of value amid global trade tensions. Several financial consumers have turned to crypto in the last two years to safeguard their assets. As a result, Bitcoin recorded growing numbers signaling heightened global adoption. The influx of new users to the market spiked institutional interest , leading to an overall increase in price and trader sentiment. For Hayes and most bulls, a recovery is inbound to send BTC to previous levels. At the time of writing, Bitcoin’s price had increased by 1.6% to $84,425. Big Banks Shine Hope For Crypto A slew of financial institutions increased the odds of a recession in the United States and hinted at more policy rate cuts. Following massive outflows from the U.S. stock market, JP Morgan and Goldman Sachs noted that rate cuts are imminent as the Feds look to avert an economic meltdown. Traditionally, rate cuts have spiked Bitcoin price, leading to similar trading patterns in altcoins. Several trades are pricing in institutional inflows due to imminent rate cuts and Chinese capital.
