Bitcoin $BTC may become the foundation of trade wars

The former head of the cryptocurrency exchange BitMEX, Arthur Hayes, believes that the escalation of the economic conflict between the USA and China could play in favor of Bitcoin. According to his assessment, the key factor will be the stability of the first cryptocurrency above the level of $76,500 by mid-April. This, in the expert's opinion, will be a signal for an increase in investor interest amid the instability of traditional markets.

The USA is strengthening its protectionist course, which is already reflected in the increase of import duties. This may push China towards devaluing the yuan, which means it could cause a capital outflow to alternative assets. Chinese investors are increasingly viewing cryptocurrencies as a way to preserve savings in the context of currency fluctuations and geopolitical instability. Additional pressure is also coming from the reduction of investments in American tech giants, from which foreign market participants are massively withdrawing funds.

In such a situation, the Federal Reserve will likely have to ease monetary policy.