China’s response to America’s trade tariffs could lead to capital flight to Bitcoin and crypto, as stated by BitMEX founder Arthur Hayes. Hayes mentioned that a devaluation of the Chinese yuan by the central bank could result in Chinese capital flowing into Bitcoin, a scenario that has occurred in the past and could potentially happen again. Bybit co-founder Ben Zhou also noted that a drop in the yuan historically led to an increase in Chinese capital flowing into BTC, which is positive for Bitcoin. The devaluation of the yuan against the US dollar in the past has seen increased interest in Bitcoin, with some analysts suggesting that Chinese investors used Bitcoin as a hedge. Wealthy Chinese individuals have previously turned to crypto to preserve their wealth, avoid capital controls, and move their assets beyond government reach. Currency devaluations can erode trust in central banks and government financial management, prompting people to explore decentralized alternatives like Bitcoin. With the US threatening to impose additional tariffs on China and China vowing to retaliate, the situation could escalate further. The Chinese Commerce Ministry has stated that China will take necessary measures to defend its interests in response to any escalated tariff actions by the US. This trade tension could potentially drive more capital towards Bitcoin as a safe-haven asset.