{"id":126737,"date":"2025-04-08T20:16:10","date_gmt":"2025-04-08T20:16:10","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126737"},"modified":"2025-04-08T20:16:10","modified_gmt":"2025-04-08T20:16:10","slug":"china-counters-tariffs-with-yuan-devaluation-which-is-bullish-for-btc","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126737","title":{"rendered":"China counters tariffs with yuan devaluation, which is &#039;bullish for BTC&#039;"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsWith US President Donald Trump imposing 104% tariffs on Chinese imports, Beijing is responding by letting the yuan weaken against the dollar \u2014 a move that analysts say could spark the next leg of the Bitcoin bull market.<br \/>\nOn April 8, the yuan-to-US dollar exchange rate fell to its lowest level since 2023, signaling the Chinese central bank\u2019s readiness to let its currency fluctuate more freely.\u00a0<br \/>\nThe US dollar-to-yuan exchange rate on April 8. Source: BloombergWith the trade war ratcheting up, \u201cexpectation for China to eventually devalue the currency has jumped and the pressure won&#8217;t go away easily,\u201d Ju Wang, head of Greater China FX at BNP Paribas, told Reuters.<br \/>\nThe yuan\u2019s devaluation could drive the narrative of Chinese capital flight into hard assets, which includes Bitcoin (BTC), according to BitMEX founder Arthur Hayes.\u00a0<br \/>\n\u201cIt worked in 2013, 2015, and can work in 2025,\u201d said Hayes.<br \/>\nBybit\u2019s co-founder and CEO, Ben Zhou, agreed, arguing that China will let the yuan weaken to counter the trade war. This means \u201ca lot of Chinese capital flow into BTC, [which is] bullish for BTC,\u201d said Zhou.<br \/>\nSource: Ben ZhouBybit is the world\u2019s second-largest crypto exchange by volume and is a popular platform for derivatives traders. In December, the exchange said users in mainland China can now trade freely on the platform without the use of a VPN but that yuan trades are not permitted.<br \/>\nRelated: $2T fake tariff news pump shows \u2018market is ready to ape\u2019<br \/>\nCurrency volatility is here to stay as US-China trade war heats up<br \/>\nCurrency fluctuations are part and parcel of an escalating trade war that pits the two largest economies against each other.\u00a0<br \/>\nBeyond the yuan-dollar trade, investors are bracing for \u201cinsane\u201d foreign exchange volatility tied to the trade war, according to Brent Donnelly, the president of Spectra FX Solutions.\u00a0<br \/>\nThe US dollar has been in a steady decline since President Trump\u2019s inauguration, with the DXY Dollar Index falling from a high of nearly 110 to the current sub-103 level.\u00a0<br \/>\nThe decline between the end of February and early March was one of the sharpest moves in the last decade, according to Julien Bittel, who heads macro research at Global Macro Investor.<br \/>\nThe DXY tracks the US dollar\u2019s performance against a basket of six currencies, with the euro and Japanese yen having the largest weightings.\u00a0<br \/>\nThe US dollar, as measured by the DXY, has weakened considerably in recent months. Source: MarketWatchHistorically, Bitcoin\u2019s price has exhibited a strong inverse relationship with the US dollar, with a weaker greenback associated with a higher BTC price and vice versa.<br \/>\nRelated: As Trump tanks Bitcoin, PMI offers a roadmap of what comes next<a href=\"https:\/\/cointelegraph.com\/news\/china-counters-tariffs-yuan-devaluation-bullish-btc?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsWith US President Donald Trump imposing 104% tariffs on Chinese imports, Beijing is responding by letting the yuan weaken against the dollar \u2014 a move that analysts say&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126737"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126737"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126737\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126737"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}