BitMEX co-founder Arthur Hayes has warned that escalating U.S.-China trade tensions, particularly in response to new American tariffs, could accelerate capital flight from China — with crypto assets potentially serving as a key exit route.
In a recent market analysis, Hayes argued that Beijing’s likely reaction to the tariffs won’t come in the form of direct retaliation but through quiet monetary policy moves, such as cutting interest rates and allowing the yuan to weaken. These steps, he said, may prompt wealthy individuals and businesses in China to move capital offshore in search of stability and higher returns.
Hayes pointed to crypto as a natural beneficiary of such capital outflows, especially given its borderless nature and rising adoption in Asia. He emphasized that Bitcoin and other digital assets could serve as a hedge against devaluation and tighter capital controls.
The warning comes amid broader geopolitical uncertainty, with investors increasingly turning to alternative assets like crypto to shield themselves from volatility in traditional markets. Hayes also suggested that global liquidity could surge as central banks respond to macroeconomic shocks, further fueling risk-on sentiment in the crypto sector.
While the timeline of China’s potential response remains uncertain, Hayes believes the longer-term impact could be bullish for the crypto market as capital seeks refuge in decentralized alternatives.
