Bitcoin May Get Boost as Chinese Yuan Devalues Amid US Trade War
The last several weeks have seen economic policy wreak havoc on the markets. However, that could be set to benefit the leading cryptocurrency, as Bitcoin may get a boost with the Chinese yuan devaluing amid the brewing US trade war aligning with historical trends for the token.
Both the United States and China have been embroiled in rising geopolitical tensions; the markets are in a concerning spot. Following the debut of US President Trump’s Liberation Day tariffs, the US stock market suffered a three-day selloff that wiped $5 trillion of value in US equities.
Also Read: BTC: Why Is Bitcoin Crashing Today Falling to $76,000?
Bitcoin May Be the Winner of the Brewing US-China Trade War
Throughout the year so far, geopolitical tensions have led to an increasingly unpredictable finance market. Not only has that upset traditional sectors but the cryptocurrency market as well. Despite the regulatory headway it’s made this year, the leading token may get a surprising boost.
According to BitMEX co-founder Arthur Hayes, Bitcoin could get a notable boost as the Chinese yuan devalues amid the brewing trade war with the United States. Specifically, Hayes noted that monetary policy and currency valuations could trigger a jump in BTC adoption. Ultimately, then pushing the value of the digital asset up while fiat stumbles.
Also Read: Standard Chartered: Bitcoin Still has $500k Target for Trump’s 2nd Term
In his post to X (formerly Twitter), Hayes pointed to two historical precedents. Specifically, in 2013 and 2015, currency devaluations led to a surge for Bitcoin. Moreover, he noted that 2025 could see the same happen amid the current circumstance.
He wasn’t the only expert pointing to this reality. Bybit CEO Ben Zhou recently discussed the relationship between the yuan and Bitcoin. “China will try to lower the RMB to counter the tariff. Historically, whenever the RMB drops, a lot of Chinese capital flows into BTC, bullish for BTC.”
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Bitcoin May Get Boost as Chinese Yuan Devalues Amid US Trade War
The last several weeks have seen economic policy wreak havoc on the markets. However, that could be set to benefit the leading cryptocurrency, as Bitcoin may get a boost with the Chinese yuan devaluing amid the brewing US trade war aligning with historical trends for the token.
Both the United States and China have been embroiled in rising geopolitical tensions; the markets are in a concerning spot. Following the debut of US President Trump’s Liberation Day tariffs, the US stock market suffered a three-day selloff that wiped $5 trillion of value in US equities.
Also Read: BTC: Why Is Bitcoin Crashing Today Falling to $76,000?
Bitcoin May Be the Winner of the Brewing US-China Trade War
Throughout the year so far, geopolitical tensions have led to an increasingly unpredictable finance market. Not only has that upset traditional sectors but the cryptocurrency market as well. Despite the regulatory headway it’s made this year, the leading token may get a surprising boost.
According to BitMEX co-founder Arthur Hayes, Bitcoin could get a notable boost as the Chinese yuan devalues amid the brewing trade war with the United States. Specifically, Hayes noted that monetary policy and currency valuations could trigger a jump in BTC adoption. Ultimately, then pushing the value of the digital asset up while fiat stumbles.
Also Read: Standard Chartered: Bitcoin Still has $500k Target for Trump’s 2nd Term
In his post to X (formerly Twitter), Hayes pointed to two historical precedents. Specifically, in 2013 and 2015, currency devaluations led to a surge for Bitcoin. Moreover, he noted that 2025 could see the same happen amid the current circumstance.
He wasn’t the only expert pointing to this reality. Bybit CEO Ben Zhou recently discussed the relationship between the yuan and Bitcoin. “China will try to lower the RMB to counter the tariff. Historically, whenever the RMB drops, a lot of Chinese capital flows into BTC, bullish for BTC.”
Read More