Chinese investors may drive a major rally in Bitcoin as a hedge against a weakening yuan, says BitMEX co-founder Arthur Hayes.
Historically, Chinese investors have turned to Bitcoin in times of yuan devaluation, generating increased demand.
The recent drop in the Chinese yuan to its lowest level since 2023 due to fears over US trade tariffs has raised concerns about inflation and currency devaluation.
However, strict regulations and legal uncertainties around cryptocurrency trading in China may limit retail investors' access to Bitcoin markets.