{"id":21663,"date":"2023-06-17T19:17:43","date_gmt":"2023-06-17T19:17:43","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/china-will-lead-cryptos-next-bull-market\/"},"modified":"2023-06-17T19:17:43","modified_gmt":"2023-06-17T19:17:43","slug":"china-will-lead-cryptos-next-bull-market","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/china-will-lead-cryptos-next-bull-market\/","title":{"rendered":"China will lead crypto\u2019s next bull market"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1687025437338-9c19a745-03df-49c3-b9df-5e609cc846cb-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1687025437338-9c19a745-03df-49c3-b9df-5e609cc846cb-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1687025437338-9c19a745-03df-49c3-b9df-5e609cc846cb-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1687025437338-9c19a745-03df-49c3-b9df-5e609cc846cb-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li dir=\"ltr\">Arthur Hayes says the crypto autumn rally will be catalysed by Chinese traders.<\/li>\n<li dir=\"ltr\">According to the BitMEX co-founder, a weakening of the yuan amid massive credit issuance will drive capital into crypto markets.<\/li>\n<li dir=\"ltr\">He notes that \u201cHong Kong will be the conduit through which Chinese capital is allowed to own crypto.\u201d<\/li>\n<\/ul>\n<p dir=\"ltr\">Arthur Hayes, the co-founder and former CEO of crypto exchange <a href=\"https:\/\/coinjournal.net\/exchanges\/bitmex\/\">BitMEX<\/a>, believes the next crypto market rally will be shaped by the Chinese trader.<\/p>\n<p dir=\"ltr\">In an opinion laid out in his latest <a href=\"https:\/\/cryptohayes.substack.com\/p\/fungible\" rel=\"noopener noreferrer\" target=\"_blank\">blog post<\/a>, Hayes highlights that the US Securities and Exchange Commission (SEC)\u2019s current crackdown on crypto might be a negative trigger. The crypto market is likely to freak out and crater even further due to this.<\/p>\n<p dir=\"ltr\">However, according to the entrepreneur, it is not the US but <a href=\"https:\/\/coinjournal.net\/news\/tag\/china\/\">China<\/a> that could hold the baton as crypto heads into the next bull market. And the one catalyst to watch out for would be the \u201creturn of the Chinese trader\u201d amid the weakening of the Chinese yuan.<\/p>\n<p dir=\"ltr\">\u201c<em>The return of the Chinese crypto trader through the financial pipes of Hong Kong will reignite the market at the same time the broke-ass American mass affluent are effectively shut out<\/em>,\u201d Hayes wrote in the blog post published June 16.<\/p>\n<h2 dir=\"ltr\">Hayes explains how China leads the next bull rally<\/h2>\n<p dir=\"ltr\">The current market setup is much like the summer of \u00a02015, that \u201cnuclear bear market\u201d whose catalyst was the <a href=\"https:\/\/coinjournal.net\/news\/after-8-years-mt-gox-creditors-may-start-receiving-their-btc-this-month\/\">implosion of Mt. Gox<\/a>.\u00a0<\/p>\n<p dir=\"ltr\">Just as then, the 2022 bear market that included the implosion of FTX has volatility and trading volumes dried up and the sideways price action excruciatingly boring. Indeed, compared to 2015 when Bitcoin price traded near $200 for a long time, 2023 is seeing this with prices ranged below $30k since the breakdown in November 2022.<\/p>\n<p dir=\"ltr\">\u201c<em>But in August of 2015, the PBOC suddenly sparked a rally in China\u2019s interest for Bitcoin with a \u201cshock\u201d devaluation vs. the USD. From August to November of 2015, the price of Bitcoin tripled, with Chinese traders driving the market higher. I believe something similar could happen in 2023<\/em>,\u201d Hayes noted.<\/p>\n<p dir=\"ltr\">According to the BitMEX co-founder, the above is an outlook he sees materializing as the world\u2019s second-largest economy embarks on an insane credit issuance spree. On why selling now amid concerns around the US regulatory environment \u201cis misplaced.\u201d Why?<\/p>\n<p dir=\"ltr\">\u201c<em>At some point, the selling will stop, and then we get the dreaded sideways. The boring sideways price action will reign until something jump starts the degen spirits of crypto traders<\/em>.\u201d<\/p>\n<p dir=\"ltr\">That trigger, he says, will be a slowdown in China\u2019s economy and the subsequent money printing spree that will weaken the yuan and see massive inflows into crypto. He explained:<\/p>\n<p dir=\"ltr\">\u201c<em>The less the Chinese economy grows, the more credit will be issued. Then the currency will weaken, capital will be allowed to \u201cflee\u201d into appropriate vehicles, and finally, the crypto capital markets will be provided with the spark to hopefully start the autumn rally<\/em>.\u201d<\/p>\n<p dir=\"ltr\">To weaken the currency, Hayes says the Peoples Bank of China (PBOC) will look to encourage credit growth sectors of the economy deemed \u201cgood.\u201d These areas include semiconductors, artificial intelligence (AI), clean energy, and property. The central bank will allow these \u201cgood\u201d sectors to access higher loan quotes, with banks \u201cinstructed to lend a certain amount of yuan to these sectors.\u201d<\/p>\n<p dir=\"ltr\">The weakening of the yuan, and the focused approach to attracting crypto and blockchain in <a href=\"https:\/\/coinjournal.net\/news\/bitcoin-bulls-tap-hong-kong-news-to-test-key-resistance\/\">Hong Kong<\/a> are going to be key factors, he added. It is a trajectory that best suits HODLers. The crypto bull summed up his market outlook:<\/p>\n<p dir=\"ltr\">\u201c<em>I have predicted before and continue to believe that Hong Kong will be the conduit through which Chinese capital is allowed to own crypto financial assets<\/em>.\u201d\u00a0<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/arthur-hayes-says-the-chinese-trader-will-drive-cryptos-next-bull-market\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Arthur Hayes says the crypto autumn rally will be catalysed by Chinese traders. According to the BitMEX co-founder, a weakening of the yuan amid massive credit issuance will drive capital into crypto markets. He notes that \u201cHong Kong will be the conduit through [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":21664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/21663"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=21663"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/21663\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/21664"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=21663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=21663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=21663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}