Arthur Hayes, the founder of BitMEX, suggests that China's reaction to US trade tariffs might drive more capital into Bitcoin and cryptocurrency. Historically, a decline in the yuan often leads Chinese investors to seek refuge in Bitcoin, as seen during significant yuan devaluations in 2015 and 2019. When the yuan weakened against the dollar, Bitcoin's value tended to increase, indicating that many investors viewed it as a safeguard against currency depreciation and governmental oversight. Currently, as the US ramps up tariffs, China is likely to counter by devaluing the yuan, which could trigger another wave of capital flight towards Bitcoin as wealthy Chinese citizens look to protect their assets from state control and inflationary pressures. This trend underlines a growing distrust in central bank stability and highlights the allure of decentralized financial alternatives like Bitcoin.

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