The escalating US-China trade war has sent global markets into a frenzy, with BitMEX co-founder Arthur Hayes believing that Chinese money could soon be entering Bitcoin. BTC price has already bounced back from yesterday’s lows of $74,400, and is currently trading north of $80,000 levels as of press time. Investors are waiting for a better negotiation in the trade deal while leaving behind the volatility.
Arthur Hayes Explains Why Chinese Money Could Enter Bitcoin
Amid uncertainty in global monetary trends, market players are looking at China’s potential influence on Bitcoin. Arthur Hayes argues that a devaluation of the Chinese yuan (CNY) could drive capital outflows into BTC, reviving a trend seen in 2013 and 2015. With $USDCNH nearing five-year highs, whispers of a possible policy shift are gaining momentum.
Hayes further establishes the link between a weaker Yuan and the Bitcoin nexus. He stated that Yuan devaluation, spurred by China’s independent monetary policy, is seen as a strategic move by President Xi Jinping to sustain economic competitiveness. As per Arthur Hayes, this creates a bullish narrative for Bitcoin as Chinese capital seeks alternative avenues amid the devaluation.
While many doubt that China’s leadership will fundamentally alter its stance, the current trajectory of the yuan suggests that authorities may soon step in to arrest the decline.
Trade War Tensions At New High
US President Donald Trump is in no mood to back down on his tariffs, especially on China, as the two largest global economies escalate the trade war further. In further escalation, Trump announced plans to impose an additional 50% tariff on Chinese imports, bringing the total tariffs on goods from China to 104%. This would combine the existing 20% and 34% tariffs with the new levy.
The United States imports approximately $439 billion worth of goods from China annually. President Trump has given China until April 8 to rescind its 34% tariff on U.S. goods, warning that failure to do so will activate additional measures. However, Chinese officials have issued a firm statement, declaring they will “fight until the end” against the proposed tariffs.
Where Is BTC Price Heading Next?
As per the Bitcoin falling wedge pattern, the BTC price has bounced back from the crucial support and is currently trading 4.54% up at $80,336, with daily trading volumes surging 85% to more than $86 billion. Bitcoin is likely to rebound toward the critical $85,000 resistance level, a point where substantial selling pressure could emerge.
Renowned crypto analyst Rekt Capital also believes that the Bitcoin bottom formation could be in amid the ongoing market correction. To forecast this, the analyst highlights historical trends in Bitcoin’s daily Relative Strength Index (RSI).
According to the analyst, the current price levels, extending up to approximately $70,000, are likely to represent the lower boundary of this downturn. Our BTC price prediction indicator shows the asset to flirt around $77,000 over the next month.
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