Trump's Trade War Shakes Crypto, But BitMEX's Hayes Sees a Silver Lining

Hang onto your hats, crypto fans! Trump's trade war is sending shockwaves through the markets, and Bitcoin's feeling the heat. But hold up—BitMEX's Arthur Hayes is calling it: there's a hidden gem in this chaos that investors are totally missing out on.

Bitcoin's been on a wild ride, folks. Since hitting its peak back in January, it's shed over half a trillion bucks in market cap, all thanks to the jitters over Trump's trade war. But guess what? On Tuesday, April 8, Arthur Hayes, the co-founder of BitMEX, dropped a bombshell: those tariffs might just be the secret sauce to boost BTC.

"If not the Fed then the PBOC will give us the yachtzee ingredients. CNY deval = narrative that Chinese capital flight will flow into $BTC. It worked in 2013, 2015, and can work in 2025. Ignore China at your own peril."

So, what's Hayes eyeing? It's all about the Chinese yuan taking a hit. On April 8, it tanked to its lowest in 2023 against the US dollar, hitting 7.31 to one. And why? You guessed it—fears over how those US tariffs are messing with the Chinese economy.

Hayes is betting big that a weakening yuan will send Chinese investors scrambling for a hedge against inflation, and guess who's waiting in the wings? Bitcoin, baby! He's pointing back to 2013 and 2015 when the same devaluation fears sent Bitcoin soaring.

How China's Moves Shake Bitcoin's Price

Listen up, because China's been a powerhouse in the Bitcoin game. Back in 2013, when the People's Bank of China started playing fast and loose with monetary policy, Bitcoin became the go-to hedge against a falling yuan. Back then, the yuan was at 6.12 per dollar—now it's at 7.31.

Fast forward to August 2015, and the central bank pulled a shocker, devaluing the yuan by over 3% in one day to juice up exports and growth. And Bitcoin? It shot up from $200 to $500 by November. Talk about a direct hit from monetary policy to Bitcoin's demand!

But hold your horses—Bitcoin's not the only game in town for Chinese investors looking to hedge against inflation. Gold's been on a tear all year, and with all the legal gray areas and tight regulations around Bitcoin, it might be a tough sell for the average Joe.