Arthur Hayes Predicts BTC Surge Driven by China

BitMEX co-founder Arthur Hayes recently released an essay titled “Let’s Go Bitcoin”, where he addresses China’s economic challenges and anticipated shift to monetary easing, suggesting that this could lead to a significant BTC price increase.

Hayes mentioned learning a lesson in what he calls “corporate socialism,” arguing that major corporations often succeed not through free-market forces but with substantial state support.  

Cover of Arthur Hayes’s essay Let’s Go Bitcoin. Source: cryptohayes.substack.com

Hayes asserts that economic systems worldwide generally inflate real estate bubbles, which then burst and trigger financial crises. He points specifically to Japan's 1989 crisis, the U.S. crisis in 2008, and the EU crisis in 2011.  

Now, China appears to be joining the list of those affected by real estate bubbles, attempting to address excessive debt in the sector through its “Three Red Lines” policy.  

Drawing an analogy to cancer treatment, Arthur Hayes suggests that China may soon turn to “monetary chemotherapy” to curb deflation and prevent economic collapse.  

In essence, the BitMEX co-founder believes that the yuan will weaken, spurring inflation. Despite the ban on cryptocurrency in mainland China, Hayes contends that Chinese investors will seek Bitcoin as an alternative store of value, noting they have reportedly already found ways to fund their exchange balances indirectly.