With US President Donald Trump imposing 104% tariffs on Chinese imports, Beijing is responding by letting the yuan weaken against the dollar — a move that analysts say could spark the next leg of the Bitcoin bull market.
On April 8, the yuan-to-US dollar exchange rate fell to its lowest level since 2023, signaling the Chinese central bank’s readiness to let its currency fluctuate more freely.
The US dollar-to-yuan exchange rate on April 8. Source: Bloomberg
With the trade war ratcheting up, “expectation for China to eventually devalue the currency has jumped and the pressure won’t go away easily,” Ju Wang, head of Greater China FX at BNP Paribas, told Reuters.
The yuan’s devaluation could drive the narrative of Chinese capital flight into hard assets, which includes Bitcoin (BTC), according to BitMEX founder Arthur