Crypto veteran Arthur Hayes thinks upcoming Chinese monetary policy will boost the price of Bitcoin (BTC).

Hayes notes in a new analysis that BTC’s price “will soar” as long as fiat money is printed, regardless of who the recipient is.

“The rhetoric right now from financial analysts is that the announced Chinese stimulus measures are still not enough to right-size the economy. That is true, but tucked inside the recent announcements are clues that China, directed by President Xi, stands ready to inject the monetary chemo to cure their deflationary cancer. That means that Bitcoin will soar on a secular basis as China reflates its banking system and property sector. Given that the Chinese property bubble was the largest in human history, the amount of yuan credit created will rival the sum of dollars printed in the US in response to COVID in 2020–2021.”

The BitMEX founder notes, however, that such policies take time to implement and the market won’t instantly recognize the impact and increase the price of Bitcoin.

“It takes time for chemo to kill the patient. During these initial stages, Chinese savers are reacting as I would expect: by buying oversold domestic equities and heavily discounted flats. It isn’t obvious to the world yet that this is the policy Xi has decided to pursue. But give it time, and the effects will be undeniable.

The fact economists are bearish on the size and scale of the stimulus so far presents a great buying opportunity. Because when the average wealthy coastal living Zhou decides they must have Bitcoin at any yuan price, the upside price volatility will harken back to August 2015, when, after a shock yuan devaluation by the PBOC, Bitcoin went from $135 to $600 — an almost 5x pump in under 3 months.”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Bitcoin doesn’t require a U.S. dollar crash to become a six-figure asset class, Bitwise CIO Matt Hougan opined on X.

Bitcoin (BTC) has often been hailed as a hedge against the dollar’s declining purchasing power and as a potential beneficiary of a massive fiat implosion.

Some proponents have suggested that Bitcoin needs a dollar collapse to reach $200,000 per BTC and beyond. However, Hougan argued that this assumption is incorrect for two main reasons: growing demand for store-of-value assets and persistent government spending.

According to the Bitwise executive, these factors reinforce investor conviction when they invest in Bitcoin. Hougan further argued that store-of-value markets have gained momentum due to “governments abusing their currencies.”

For instance, U.S. spending has accelerated in recent years, and the country’s debt has surpassed $35 trillion. Analysts estimate the national debt grows by about $1 trillion every 100 days at its current pace.

Additionally, Unlimited Funds CIO Bob Elliott cited data indicating that “developed world sovereign debt,” such as U.S. Treasuries, may no longer effectively serve as bailout mechanisms, potentially supporting a pro-Bitcoin outlook.

Hougan expects this pattern to continue, leading to more mature BTC markets, increased adoption, and higher prices for the leading cryptocurrency.

So, no, the dollar doesn’t need to collapse for bitcoin to hit $200k. All you need is Bitcoin to continue on its current path of maturing as an institutional asset. But it’s increasingly looking like both parts of the argument will come true. That’s why Bitcoin is surging toward all-time highs.

Matt Hougan, Bitwise CIO

Hougan’s remarks came on Oct. 29, as BTC rallied closer to its all-time high set in March. BTC rose 5% in the last 24 hours, reaching $72,756. While technical indicators pointed to a potential Bitcoin breakout, historical patterns warn of volatility as U.S. citizens prepare to vote in the upcoming presidential election.