Cryptocurrency

Bitcoin

Impact

Arthur

Echoes

Arthur Hayes has suggested that Chinese <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">financial</a> authorities might be preparing to bolster the country’s economy with credit, which could in turn support <a href="https://en.coin-turk.com/famed-venture-capitalist-arthur-cheong-forecasts-rising-crypto-sectors-amidst-market-lull/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> (<a href="https://en.coin-turk.com/the-future-of-bitcoin-will-it-surpass-69000-in-2024/" data-wpel-link="internal" rel="noopener noreferrer nofollow">BTC</a>) and the broader cryptocurrency market.
<h2 id="chinese-echoes-in-cryptocurrency">Chinese Echoes in Cryptocurrency</h2>
BitMEX co-founder highlighted that factors could lead China to “flood the world with yuan credit”. The CIO of Maelstrom and former BitMEX CEO explained how US monetary policy has created more favorable conditions for Chinese officials to issue significant new credit to their beleaguered real estate sector.
He described the US’s recent policy as weakening the dollar by issuing more Treasury bonds. He noted that the effect of this policy is now clearly visible through the decline of the dollar index DXY throughout November. Arthur Hayes argued that the weak dollar provides Chinese officials with more space to press on the yuan printing presses. The expert shared the following statements:
<blockquote style="text-align: justify">
 Despite the printing presses going crazy against the dollar, the yuan could at least remain stable and even gain in value.
</blockquote>
Hayes mentioned that conditions are developing for the yuan to actually strengthen as the dollar continues to weaken. The BitMEX founder underlined:
<blockquote style="text-align: justify">
 This gives China the leeway to significantly increase the amount of onshore yuan credit without weakening its currency.
</blockquote>
<img decoding="async" class="alignnone size-full wp-image-282125" src="https://coin-turk.com/wp-content/uploads/2023/11/hayess.jpg" alt="" width="1201" height="720">
<h2 id="interest-in-bitcoin-could-increase">“Interest in Bitcoin Could Increase!”</h2>
Arthur Hayes stated that this global monetary dynamic could benefit Bitcoin and the cryptocurrency market. He highlighted the possibility of capital inflows to risk assets from mainland China using Hong Kong as a proxy:
<blockquote style="text-align: justify">
 If there is a way to legally move cash from the mainland to Hong Kong, Bitcoin will be one of many risky assets to be purchased. Considering the dollar is the world’s largest funding currency, if the price of credit falls, all fixed supply assets like Bitcoin and gold will increase in terms of dollar price.
</blockquote>
The BitMEX co-founder concluded his remarks by stating that he plans to focus on crypto investments instead of investing in US Treasury bonds, as his prediction supports risky assets:
<blockquote style="text-align: justify">
 I will continue to move money from Treasury bonds to cryptocurrency because I want to get in now before the data showing where China’s money printer is heading becomes clearly apparent.
</blockquote>
<ul class="summary">
 <li>Chinese monetary strategy could boost Bitcoin.</li>
 <li>Weak dollar gives leeway to China’s yuan.</li>
 <li>Global dynamics may favor crypto investments.</li>
</ul> Continue Reading: <a href="https://en.coin-turk.com/exploring-the-impact-of-chinas-monetary-policy-on-bitcoin-and-the-wider-crypto-market/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/exploring-the-impact-of-chinas-monetary-policy-on-bitcoin-and-the-wider-crypto-market/</a>

Exploring the Impact of China’s Monetary Policy on Bitcoin and the Wider Crypto Market

Table of Contents

COINTURK NEWS

Other articles published on Nov 28, 2023

While Bitcoin Price Stalls, Whales Show Accumulation Trend!

Ethereum turns deflationary as validators exit and defi transactions drop 57%

Breaking: Animoca Brands Officially Becomes Largest Validator On TON Blockchain

US Taxpayers Spend $451 Billion Per Year on Illegal Migrants

FTX Users Sued New Targets In Class-Action Lawsuit To Recover Lost Funds

Spain enforces new crypto tax law for foreign asset declarations

Join our free newsletter for daily crypto updates!