According to Hayes, the upcoming cryptocurrency price surge will coincide with China’s re-entry into the cryptocurrency global economy, and Hong Kong may serve as the entry point.
According to Arthur Hayes, the erstwhile Chief executive of digital trading firm BitMEX, the upcoming cryptocurrency bubble rush will begin whenever China enters the system again. Hong Kong will undoubtedly become a key player in this procedure.
Hayes explained reasons he believes the Hong Kong administration’s statement about presenting a law to oversee cryptocurrency is an indication China is striving to finesse its entrance further into the industry in his medium article titled “Comeback” from October 26. This may be as a result of Hong Kong serving as “China’s conduit in its interactions with the globe at large.”
“The potential uptrend will return if China embraces cryptocurrencies. Although it will take time, indications are beginning to appear.
According to Hayes, Hong Kong could serve as a center for Chinese wealth entering the international cryptocurrency ecosystem as well as Beijing’s launching pad for cryptocurrency trading.
“Those same streams will constitute a core and defend component of the forthcoming bullish trend if they manifest in the manner I see,” the author said.
According to Hayes, Beijing’s plan to weaken its influence without affecting its local monetary network includes Hong Kong’s “reconfiguration as a crypto top player in its locale.”
According to a Forex Suggest report released in July 2022, Hong Kong seems to be the nation that is almost ready for the broad deployment of cryptocurrencies. It took into account a number of variables, including the pace of innovation, cryptocurrency ATM installs, and crypto-friendly policies.
Despite being one of the greatest global economies in the modern age, China has generally been unfriendly to the cryptocurrency sector. In 2013, the nation enacted its inaugural prohibition, forbidding banking institutions from processing Cryptocurrency transactions
Beijing’s Role
When Beijing conducted many administrative measures to banish the Mining process from the nation and declared all cryptocurrency trades to be banned in 2021, it stepped up its campaign on the industry.
But according to Hayes, “China hasn’t abandoned cryptocurrency; it has simply been inactive.”
In September 2022, China eventually started up its Bitcoin mining once more, and Chainalysis stated in its 2022 International Cryptocurrency Acceptance Report that China had re-entered the leading ranks this calendar year since coming in 13th place the previous year.
With the Chinese administration’s assault on cryptocurrencies, the International Cryptocurrency Acceptance Index’s researchers claimed they considered the situation “particularly noteworthy,” but the research report suggests that “the prohibition has either been unsuccessful or lightly implemented.”
