China’s response to new duties of the United States can provoke a retracts to cryptocurrencies. This was stated by Ex-SEO BITMEX Arthur Hayes.
If not the PBOC Will Give Us the Yachtze Ingredients.
Cny Deval = Narrative that Chinese Capital Flight Will Flow Into $ BTC.
IT WORKED in 2013, 2015, and can work in 2025.
Ignore China At Your Own Peril. pic.twitter.com/laeqzejzt
– Arthur Hayes (@cryptohayes) April 8, 2025
Yuan devaluation by the People’s Bank of China (NBK) in response to the US trading tariffs will become a trigger to restart Bullran in a crypto, an expert said.
He recalled that such a scenario was already observed in 2013 and 2015 and may be repeated in 2025.
The head of Bybit Ben Zhou agreed with Hayes.
Translation: US vs China Tariff War … China Will Try to Lower Rmb to Counter The Tariff, Historically, Whenever Rmb Drops, A Lot of Chinese Capital Flow Into BTC, Bullish For BTC. https://t.co/oq4wtsdwq
– Ben Zhou (@benbybit) April 8, 2025
He emphasized that in the past, against the backdrop of the weakening of the yuan, “a significant part of Chinese capital flowed into bitcoin.” This created a strong impulse for an asset growth.
In August 2015, China devalued Yuan by almost 2% with respect to the US dollar, which became the largest one -day fall over the past decades. During this period, interest in digital gold increased significantly, although the question of a direct causal relationship remains the subject of disputes.
In August 2019, the yuan exchange rate in relation to the US dollar fell below 7: 1. In the same period, there was an increase in the price of bitcoin. Some analysts suggested that Chinese investors used a digital asset as a hedge, since in the first week of August the coin course jumped by 20%.
In September 2023, Bloomberg analysts noted that when weakened by the national loan, investors often use bitcoin to maintain capital and bypass restrictions related to foreign exchange control.
Devalvation also undermines confidence in the central banks and the traditional financial system, which can accelerate the transition to decentralized instruments like digital assets, experts explained.
On April 7, US President Donald Trump eliminated the abolition of existing tariffs and threatened the introduction of new duties in the amount of 50% of Chinese goods.
Against this background, the Bloomberg Intelligence strategist Mike McGlone warned about the fall of bitcoin to $ 10,000.
Be in the know! Subscribe to Telegram.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
