Arthur Hayes: China will radically affect the price of bitcoin

BitMEX founder and cryptocurrency market veteran Arthur Hayes said that China’s new monetary policy could significantly increase the price of bitcoin (BTC), and the value of the cryptocurrency will «soar» as long as fiat currency is printed, regardless of who is the recipient.

According to Hayes, while the current stimulus measures announced by the Chinese authorities may not be sufficient to stabilize the economy, they do contain hints of China’s willingness under President Xi Jinping to «implement monetary chemotherapy» to overcome deflationary risks, which will help Bitcoin’s growth as China reflates its banking system and real estate sector.

«Given that China’s real estate market is the largest in world history, the amount of RMB that will be created will equal the amount of dollars printed in the United States in response to COVID-19 in 2020−2021,» Hayes emphasized.

It is worth adding that the expert warned that the implementation of such policies takes time, and the market will not immediately react to this increase in BTC prices.

«It takes time to kill cancer. In the initial stages, Chinese investors are reacting as I expected: buying undervalued stocks and heavily discounted apartments,» the analyst said.

Hayes noted that the current pessimism of economists about the amount of stimulus creates an excellent opportunity to buy bitcoin, as when wealthy investors in China decide that they urgently need BTC, it could lead to significant price volatility, similar to the situation in August 2015, when bitcoin jumped from $ 135 to $ 600 after the devaluation of the yuan.

Hayes summarized that the effects of the new policy will be undeniable if investors give the process time.