China's Yuan Devaluation at 7.34 Triggers Bitcoin Bull Run Prediction

Arthur Hayes, the prominent co-founder of BitMEX, has recently made a significant prediction regarding the potential impact of China’s yuan devaluation on the Bitcoin market. As the Chinese yuan slipped past 7.34 against the U.S. dollar, Hayes suggested that this monetary move could trigger a major bull run for Bitcoin. He argued that if the Federal Reserve does not reignite the rally, the People’s Bank of China (PBOC) might, through a looser monetary policy and a weakening currency that drives capital into Bitcoin.

For the first time since September 2023, China allowed the yuan to drop past the key 7.20-per-dollar mark, a move seen as a significant psychological signal by traders. The PBOC’s daily midpoint fix at 7.2038 indicates that policymakers are becoming more comfortable with a weaker currency, likely in response to escalating trade tensions with the U.S. Hayes views this as a pivotal moment, suggesting that China may be setting the stage for Bitcoin’s next significant surge, whether intentionally or not.

Hayes’ prediction is not merely speculative; it is grounded in historical market data. In 2013 and 2015, Bitcoin prices surged following similar yuan devaluations, driven by fears of capital controls and economic uncertainty. Currently, with the U.S. imposing a 104% tariff on Chinese imports starting April 9, and China responding with its own measures, the yuan is nearing multi-year lows. Hayes warns investors that ignoring China’s monetary policies could be risky, as wealthy Chinese investors might seek safe havens, with Bitcoin being a prime candidate.

As global tensions rise and Beijing continues to implement its monetary strategies, Bitcoin is increasingly seen as more than just a digital asset; it is becoming an escape hatch for fleeing capital. Hayes’ analysis connects the dots between China’s yuan devaluation and Bitcoin’s potential to absorb this capital. Historically, when the yuan weakens, Bitcoin tends to benefit from the tailwind.

Currently, the BTC price is trading in a tight range and facing some short-term resistance, but the broader picture is evolving. If China continues to allow its currency to slide, it could quietly ignite the next big run for Bitcoin. For traders and investors, this is not just background noise; it is a macro setup worth monitoring closely. Momentum is building, and the next chapter in Bitcoin’s global rise might be written from Beijing’s monetary strategy room.