Chinese Capital Could Flow into Bitcoin, Says BitMEX Co-founder
BitMEX co-founder Arthur Hayes believes that capital from China may enter the Bitcoin (BTC) market. In his analysis, Hayes points out that wealthy Chinese individuals and state-owned enterprises (SOEs) utilize Hong Kong banks for international transactions. He also highlights the existence of regulated crypto exchanges and brokers in Hong Kong.
According to Hayes, Bitcoin is a Chinese phenomenon, with many major miners originating from China. He notes that if there is a legal way to transfer cash from mainland China to Hong Kong, Bitcoin will be among the risk assets purchased by wealthy individuals. Additionally, Hayes explains that the Chinese government’s efforts to shift from supply-led to demand-led economy have led firms to borrow money offshore, making credit more expensive globally. However, this trend could reverse as the Chinese banking system provides more plentiful yuan credit, causing hard monetary assets like Bitcoin to rise in value.
Hot Take: Chinese Capital Boosts Bitcoin’s Prospects
BitMEX co-founder Arthur Hayes suggests that capital from China could soon flow into the Bitcoin market. With wealthy individuals and state-owned enterprises using Hong Kong banks for international transactions, and the presence of regulated crypto exchanges and brokers in Hong Kong, Bitcoin has gained popularity among Chinese investors. As China aims to shift its economy from supply-led to demand-led, firms borrowing money offshore has made credit more expensive worldwide. However, if the Chinese banking system offers more abundant yuan credit, hard monetary assets like Bitcoin are expected to increase in value.
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