Hayes takes Trump apart and reveals the trigger for the next crypto bull run

The former CEO of BitMEX, Arthur Hayes, shakes up preconceived notions about Donald Trump and his alleged influence on the crypto market. In an interview with Channel News Asia, he claims that the outcome of the U.S. presidential elections will have only a limited impact on the future of digital assets, pointing instead to China as the major catalyst for the next bull cycle.

Trump is not the savior of crypto that many hope for

The debate over the potential impact of Donald Trump on the crypto market has been raging since he announced his candidacy for the presidential elections. Arthur Hayes, an emblematic figure in the industry, sheds new light on this issue.

During his previous term, he recalls, no truly crypto-friendly policies were put in place, thus contradicting the “crypto-friendly” image attributed to the former president.

The founder of BitMEX highlights that, regardless of the winner in November, whether it be Trump or Harris, U.S. monetary policy will follow a similar trajectory. Both camps promise measures that will mechanically increase public debt: tax cuts on the Republican side, increased social spending on the Democratic side.

This situation will inevitably lead to an increase in U.S. debt issuance and more money printing, creating a potentially favorable environment for Bitcoin, regardless of the election outcome.

China, the true engine of Bitcoin’s next rise

Hayes’ analysis decisively turns to the East, identifying China as the true catalyst for the next bull cycle of Bitcoin. In the face of its worst economic crisis in decades, Beijing is preparing to launch a vast economic stimulus program that Hayes describes as “monetary chemotherapy.”

Contrary to preconceived ideas, this Chinese quantitative easing should not weaken the yuan, protected by the country’s trade surplus and its strategic agreements with Russia and Saudi Arabia. This monetary stability, combined with a massive injection of liquidity, could paradoxically reinforce Bitcoin’s appeal among the Chinese elite, seeking protection against inflation.

The recent 50 basis point rate cut by the U.S. Federal Reserve only strengthens this dynamic, thus creating an environment conducive to massive Bitcoin adoption.

In conclusion, as the attention of the crypto world focuses on the U.S. elections, Arthur Hayes invites us to broaden our perspective. The true engine of Bitcoin’s next rise may well come from China, where the unique combination of expansive monetary policies and yuan stability will create fertile ground for crypto adoption.