Recent price fluctuations of Bitcoin have attracted expert attention, exploring potential avenues for the cryptocurrency's growth amidst economic policy changes.
Bitcoin's Connection to Central Bank Actions
Arthur Hayes, co-founder of BitMEX, argues that future Bitcoin growth might hinge on decisions made by the U.S. Federal Reserve or the People's Bank of China. He pointed out that a devaluation of the Chinese yuan could lead to capital investments in Bitcoin. Hayes cited past instances where yuan depreciation acted as a catalyst for Chinese investors: "It worked in 2013, 2015, and can work in 2025," he asserts.
Recent BTC Volatility
Over the last week, Bitcoin has demonstrated significant volatility, swinging from $81,500 to $88,500 before crashing to $74,000. This drop occurred amid escalating trade tensions between the U.S. and China, when U.S. President Donald Trump announced potential new tariffs on Chinese goods.
Expert Opinions on Bitcoin's Future
Some experts, including Bybit CEO Ben Zhou, support Hayes' view, emphasizing that yuan weakness often correlates with increased investments in Bitcoin. While some members of the crypto community expressed concerns about the potential impact, many retain optimism, pointing to historical data linking currency fluctuations to increased interest in Bitcoin.
Analysis indicates that central bank actions can significantly influence Bitcoin's price movements. Investors continue to closely monitor the global economic situation and potential shifts in central bank policies.
