‘As Long As Fiat is Created, Bitcoin Will Soar,’ Arthur Hayes

• Arthur Hayes predicted that Bitcoin will turn bullish in the near future.
• Hayes said that China’s potential money printing will turn BTC bullish.
• Bitcoin successfully reclaimed the $71,000 price level in the past 24 hours.

Crypto entrepreneur and BitMEX co-founder Arthur Hayes has published a blog post outlining a bullish case for Bitcoin. Hayes argues that the Chinese central bank will need to increase the money supply through quantitative easing (QE) to combat deflation. This, he says, will cause Bitcoin’s price to surge.

Hayes noted, while adding: 

“As long as fiat is created, Bitcoin will soar.”

Hayes also states that no other asset class “outperforms the debasement of the currency like Bitcoin does.” He believes that investors understand this and will flock to Bitcoin to protect their purchasing power when China starts printing more money.

To illustrate his point, Hayes shared a chart showing how Bitcoin has outperformed gold, the S&P 500, and the Case Schiller US Property Price Index.

Bitcoin’s Latest Price Action

Interestingly, Bitcoin successfully claimed the $70,000 price level in the past 24 hours and as per the data from CoinMarketCap, the leading digital asset is just 3.69% down from its all-time high of $73,750 and is currently trading at $71,050.43.

Hayes believes that Chinese authorities understand that they cannot ban Bitcoin, pointing out that crypto ownership is not banned in China. However, he predicts that mainland Chinese investors will be banned from investing in Hong Kong’s spot BTC exchange-traded funds (ETFs).

Read also: Bitcoin Price Soars as Institutions Pile into Spot ETFs

The BitMEX co-founder noted that funds flowing into the Hong Kong markets would not benefit the economy of mainland China and as a result, investors in the region will be banned from investing in Hong Kong spot BTC ETFs.