Bitcoin Could Rally as Chinese Investors Seek Hedge Against Yuan Decline, Says Arthur Hayes

BitMEX co-founder Arthur Hayes predicts a potential surge in Bitcoin (BTC) as Chinese investors may turn to the cryptocurrency to hedge against a weakening yuan amid escalating U.S.-China trade tensions. Hayes draws parallels to similar market behaviors in 2013 and 2015, suggesting that tariffs imposed by former U.S. President Donald Trump could inadvertently boost Bitcoin demand. Despite short-term market volatility caused by the trade war, Hayes remains optimistic about BTC’s long-term prospects as a hedge against currency devaluation.

Arthur Hayes: Bitcoin May Surge as Chinese Investors Hedge Against Yuan Drop

BitMEX co-founder Arthur Hayes believes that Bitcoin (BTC) could surge as Chinese investors hedge against the potential drop of the yuan due to tariffs imposed in Trump’s trade war. Despite the negative impact of the trade war on crypto markets, Hayes argues that these tariffs could have a hidden, positive effect on BTC, similar to past instances in 2013 and 2015. Hayes tweeted about this prediction, stating that the narrative of Chinese capital flight flowing into BTC could be a catalyst for its price increase.

Michael Saylor’s Strategy Reports $5.9B Loss After Accounting Change

Strategy (formerly MicroStrategy) will register an unrealized loss of $5.9 billion in Q1 due to an accounting change valuing BTC at market prices. The company, the largest corporate holder of BTC with 528,185 coins, did not acquire any Bitcoin between March 31 and April 6. Strategy’s shares plunged over 14% on Monday as Bitcoin’s value dropped, erasing gains since the 2024 US election. The change requires recognizing unrealized gains/losses, resulting in significant swings in earnings for Strategy and other corporate BTC holders.

Rootstock Prepares to Release SDKs for Bitcoin Layer 2s Using BitVMX

Rootstock, one of the oldest Bitcoin ecosystem projects, is moving to the next stage of enabling developers to build layer-2 networks using its computational layer. The project is weeks away from releasing software development kits (SDKs) that will allow developers to produce their own Bitcoin layer-2s using BitVMX, a modified version of the BitVM programming language. SDKs are sets of tools enabling third-parties to build applications using a particular platform or framework. Sergio Lerner, the founder of Rootstock, told CoinDesk that they are very close to having all the pieces ready for people to start building their own solutions on top of BitVMX.

BlackRock Adds Anchorage Digital as Custodian for Bitcoin ETF

BlackRock, the world’s largest asset manager, has appointed Anchorage Digital Bank N.A. as an additional cryptocurrency custodian for its iShares Bitcoin Trust ETF (IBIT). Anchorage Digital, which is the only U.S. federally chartered digital asset bank, will join Coinbase in enhancing the security and operational resilience of IBIT’s Bitcoin (BTC) holdings. This move introduces a dual-custodian model for the ETF.

Bitcoin Price at Risk of Dropping to $70,000

Bitcoin price is showing signs of potential further downside after failing to break through key resistance levels, according to analyst Rekt Capital. BTC recently closed below the March lows of $78,500 on the daily timeframe. There are also indications that suggest this former support level could be flipping into resistance. Historical RSI patterns point to a $70,000 Bitcoin price target. Rekt Capital’s analysis focuses on Bitcoin’s historical tendency to develop bullish divergences at cycle bottoms, where the RSI forms higher lows while price action creates lower lows during major bottoming periods.