Source: Cointelegraph.com NewsBitcoin (BTC) risks becoming part of a \u201cclassic bull trap\u201d when the US-China trade war takes its next step, analysis warns.
\nIn its latest bulletin to Telegram channel subscribers on April 10, trading firm QCP Capital cautioned over the latest crypto price rebound.
\nQCP: Chinese \u201ccountermeasures\u201d may leave crypto bulls stranded
\nBitcoin and altcoins joined global stock markets in rallying over the past 24 hours thanks to a decision by US President Donald Trump to pause many of his new trade tariffs.
\nChina was a clear exception to the policy, with Trump doubling down on those tariffs while alleviating pressure on other countries.\u00a0
\nFor QCP, now is the time not for relief, but to brace for China\u2019s next move.
\n\u201cWith China singled out so explicitly, market participants are bracing for Beijing\u2019s counterpunch,\u201d it said.\u00a0
\n\u201cShould retaliation materialise in force, the exuberant rally could quickly morph into a classic bull trap.\u201d
\nBTC\/USD 1-hour chart. Source: Cointelegraph\/TradingViewSuch a scenario would form a repeat of market behavior already seen this week. As Cointelegraph reported, an earlier rumor of a tariff pause that failed to find official confirmation sparked whipsaw stock moves never seen before.
\n\u201cThe surprise policy pivot temporarily soothed market anxiety, driving short-end crypto vols lower. Still, we advocate caution,\u201d QCP continued.\u00a0
\n\u201cOur desk continues to observe topside selling in May and June, suggesting that market makers are using the rally as an opportunity to offload unwanted positions.\u201d
\nBitcoin to get \u201cmeaningful slice\u201d of yuan outflows
\nOthers noted potential tailwinds for Bitcoin in the form of Chinese yuan devaluation as a stopgap measure in the trade dispute. USD\/CNY hit 18-year lows of 7.35 on the day.
\nRelated: Crypto stocks see big gains alongside US stock market rebound<\/p>\n
No deal, PBOC continues a very gradual yuan weakening. Shit \u2018bout to get spicy. Luckily $BTC loves money printing and associated ccy weakness. pic.twitter.com\/RcVkSj54O3\u2014 Arthur Hayes (@CryptoHayes) April 10, 2025<\/p>\n
\u201cChina beginning currency devaluation is more than just an economic signal\u2014it\u2019s a trigger,\u201d Sina, co-founder of asset management firm 21st Capital, told X followers in part of a post on the topic.\u00a0 Source: Cointelegraph.com NewsBitcoin (BTC) risks becoming part of a \u201cclassic bull trap\u201d when the US-China trade war takes its next step, analysis warns. In its latest bulletin to Telegram channel… <\/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\/126880"}],"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=126880"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126880\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126880"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u201cHistorically, when the yuan weakens, capital doesn\u2019t stay put. It escapes. Some of it flows into gold, some into foreign assets\u2014and a meaningful slice finds its way into Bitcoin.\u201d
\nUSD\/CNY 1-month chart. Source: Cointelegraph\/TradingViewSina suggested that the macroeconomic reality would make BTC exposure more attractive going forward.
\n\u201cNow layer on rising tariffs, slowing global trade, and a deepening crisis of confidence in traditional financial systems. The result? A growing demand for neutral, borderless, incorruptible assets,\u201d he concluded.\u00a0
\n\u201cBitcoin isn\u2019t just a hedge anymore. It\u2019s becoming a necessity in a world looking for stability outside the control of any one nation.\u201d
\nIn subsequent discussions, he acknowledged that Bitcoin had probably not yet seen a long-term price bottom.
\nPreviously, Cointelegraph reported on various BTC price targets for a sustained rebound, with many of these focusing on $70,000.
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"