The American entrepreneur and co-founder of the crypto platform BitMEX, Arthur Hayes, shared his insights into the Chinese crypto market, asserting that the return of Chinese investors could trigger a rally in the crypto industry. After a detailed analysis, the entrepreneur proclaimed that Hong Kong would direct China toward achieving a full-fledged crypto space, overpowering the United States.
Hayes took to Twitter to invite his followers’ attention to the release of his essay “Fungible”, which is a narration “about the irrelevancy of US crypto traders and why the bull market baton will transfer from the US to China”:
When one door closes another opens. "Fungible" is an essay about the irrelevancy of US crypto traders and why the bull market baton will transfer from the US to China.https://t.co/nAfNzP8fDe pic.twitter.com/KQlkXYTDLO
— Arthur Hayes (@CryptoHayes) June 15, 2023
The entrepreneur presented a comparison between the pre-pandemic and post-pandemic conditions of the American crypto market and traders. Though the traders like Ray Dalio became billionaires through the long bull market run in the nation, the increasing inflation and short-term rates through decades have made investors hopeless in long-term bonds.
However, despite huge losses, long-term government bond continues as “the entire fiat financial system is structured to force – or at the very least heavily suggest – that owning government bonds is the fiduciary duty of your pension fund manager”.
Comparing crypto markets, Hayes pointed out that “China and Japan hold the most amount of US Treasury bonds of any nation”. Also, his analysis proved that Chinese goods are more expensive than Japanese goods. It was also identified that China is cheaper than Korea by 3% but more expensive than Germany by 25%, in terms of Yield Curve Control (YCC).
Notably, post-COVID China has restarted exports, and the country is fully open to become fully competitive. Japan, sharing the same economic model, is the main competitor of China. Thus, the entrepreneur posited that the yuan should weaken against the yen to boost the Chinese market.
Analyzing numerous metrics and enlisting several reasons, Hayes concluded that China’s crypto market is evolving and the re-entry of Chinese traders could reignite the crypto market.
