Arthur Hayes, the founder of BitMEX and chief investment officer at digital asset fund Maelstrom, has shared his insights on China’s potential shift towards quantitative easing (QE) in response to ongoing deflationary pressures. He believes that such a move will significantly enhance Bitcoin’s appeal as a safeguard against currency depreciation. In his latest commentary, Hayes notes that China has been facing considerable economic challenges, including stagnant growth, a cooling property market, and declining consumer demand. While Chinese authorities have thus far refrained from implementing aggressive QE measures like those seen in the U.S. and Europe, Hayes anticipates that economic realities will compel a change in strategy towards more robust stimulus efforts. He asserts that as China injects liquidity into the economy, the increased money supply is likely to diminish the purchasing power of the yuan. In this context, Hayes argues that Bitcoin will emerge as a vital store of value, protecting investors from the adverse effects of currency devaluation. READ MORE:
Bhutan Begins Offloading Bitcoin Holdings as Prices Surge Hayes further emphasizes that this shift could accelerate Bitcoin adoption both in China and globally, as more investors look to safeguard their wealth against inflation. He points to the growing institutional acceptance of Bitcoin, suggesting that the combination of liquidity-driven market conditions and Bitcoin’s capped supply positions it for long-term price growth.