Arthur Hayes predicts China’s QE could fuel Bitcoin surge

BitMEX founder and former CEO Arthur Hayes believes China’s aggressive monetary easing policies could trigger a historic rally in Bitcoin (CRYPTO:BTC). 

In a recent blog post, Hayes argued that China’s efforts to stimulate its banking and property sectors following a major real estate crisis could indirectly boost demand for cryptocurrencies. 

According to Hayes, China’s quantitative easing (QE) measures will lead to a massive expansion of credit in the economy. 

He explained that as fiat currencies are increasingly devalued through stimulus and government interventions, Bitcoin’s value tends to rise. 

“As long as fiat money is created, Bitcoin will soar. It doesn’t matter who the ultimate recipient is,” Hayes stated. 

Drawing parallels to the U.S. monetary response to COVID-19 in 2020-2021, Hayes emphasised that China’s property bubble was the largest in history, and the resulting yuan credit creation may rival the scale of the dollar expansion seen in recent years. 

He suggested that this could lead investors to view Bitcoin as a more stable store of value compared to traditional assets like stocks or real estate. 

Despite regulatory crackdowns on crypto exchanges in China, Hayes pointed out that Bitcoin and other digital assets continue to thrive within the country. 

He noted that while visible trading pairs with the yuan may be restricted, ownership and trading activity persist. 

“The Chinese government knows it cannot ban Bitcoin,” he wrote, dismissing misinformation about outright bans on crypto ownership. 

Hayes’ analysis concludes that Bitcoin has consistently outperformed other risky asset classes during periods of currency debasement. 

He argued that when faced with preserving the value of their savings, investors will increasingly turn to Bitcoin. 

However, he cautioned that the effects of China’s QE policies will take time to manifest fully, predicting a long-term upswing for Bitcoin’s price.

At the time of reporting, the Bitcoin price was $72,119.73.