China Crisis to Fuel Bitcoin Growth According to Arthur Hayes

Breaking away from the proverbial Redtember crypto curse, Bitcoin has been experiencing a strong September – historically a rather bearish month. Despite being outperformed by Dogecoin, Solana, and XRP, Bitcoin has witnessed a substantial 9% gain in September. According to tech luminary Arthur Hayes, the digital currency could move towards an even greater jump in the coming months. That’s all thanks to China’s growing debt.

China Plans to Raise New Debt

Arthur Hayes is the co-founder of the BitMEX crypto exchange. He argues that Bitcoin could massively benefit from China’s plans to raise fresh debt. As reported by Reuters, Beijing is considering approving the issuance of over $1.4 trillion in extra debt. It is an attempt to revive its economy. 

This fiscal package might be bolstered if Donald Trump wins the upcoming U.S. election. Betting platforms like Polymarket have received over $100 million in bets from crypto enthusiasts. Many of them believe a victory of the Republican nominee could give crypto a critical push. Many industry pundits suggest Bitcoin could chase six figures shortly, regardless of the election results.

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American entrepreneur Arthur Hayes is one such analyst. In a recently published essay titled “Forward, Bitcoin,” he states that “monetary chemotherapy” in the Chinese economy could boost the prices of several assets, with Bitcoin chief among them. 

Hayes exposed the reasons that China’s financial policies could turn Bitcoin into a hedge against monetary debasement. That would effectively raise interest among traders. Its motivations mainly stem from an attempt to save the country’s economy from an epic property crisis, as CNN described. He cites other major economies like Japan and the European Union to build his case. They have experienced similar financial difficulties in the past decades. 

Can China Cure Deflationary Cancer?

Hayes theorizes that the recently announced Chinese stimulus measures, which would see the government raise six trillion yuan in debt in the next three years by issuing local government bonds and special treasury, will be insufficient in pulling the country’s economy out of its ongoing crisis. The crypto businessman also postulates that China could be ready to inject more liquidity into the markets in a bid to cure its “deflationary cancer.” By inflating both its banking system and real estate sector, whose housing bubble has been the worst the world has ever witnessed, the country could end up creating an amount in yuan that would rival that of the American dollar during the pandemic. All that, as per Hayes, could mean great news ahead for Bitcoin investors.  

A notable voice in the crypto ecosystem, Hayes believes that global economic crises are bound to increase demand for Bitcoin, which remains the largest cryptocurrency by market cap. Accounting for the weakening of fiat currencies and the widespread skepticism among younger generations over government stimulus programs, Bitcoin could reach heights that give cause for optimism. Despite its sheer volatility and a string of blockchain scandals like the FTX debacle, the asset has been expanding beyond mere tech circles. Documentaries on prominent networks like HBO have been trying to get to the bottom of the Satoshi mystery, unveiling the identity of the asset’s secretive creator. 

Growing Bitcoin Adoption

Meanwhile, Bitcoin has made its way into hundreds of physical stores and digital companies, from luxury merchants to airlines. Trailblazing businesses have also contributed to this mainstream adoption, including iGaming platforms like VegasSlotsOnline where users can learn about the best BTC casinos. Extensive guides penned by industry experts help them cut through the noise to find the safest and most profitable websites to play machine slots and tabletop games. Mobile-friendly slots cater to all playing styles, while live dealer card games offer interactive gameplay features. Additionally, gamers can grab a wealth of bonuses to manage their bankroll, whether crypto-exclusive or not.

According to several tech analysts, we are soon entering the next crypto bull market. And Bitcoin’s solid September performances may indicate an even stronger bullish phase. Teasing a record high, the digital asset climbed to $73,544 on Tuesday. The issuance of new Chinese debt could prop up its value, providing buying opportunities in the crypto markets. With Elon Musk warning about a U.S. national “debt time bomb,” urging Americans to turn to cryptocurrencies ahead of this financial emergency as he boosted meme coins during a Trump rally, Arthur Hayes is not the only tech billionaire to be vocal in his support of the digital gold, maintaining that Bitcoin will hold up – and much more.