A violent fight raged between the United States and China since the American President Donald Trump imposed additional import duties against China. China reacted with counter -tariffs, whereupon Trump already threatens with further massive customs increases. Although this causes tensions in the global markets, this could also be a bullish (positive) scenario for Bitcoin (Btc).
China evaluates the Yuan as a counter reaction
The trade war between the United States and China is in full swing. The United States has now raised an additional custom of 34 percent of Chinese goods, which means that the total importance is now 54 percent. However, China strikes back, not just with its own import tariffs.
The value of the Chinese Yuan has dropped in the past few days. The value of the Yuan compared to the dollar is now $ 0.14, the lowest level since September 2023. According to a report by Reuters Analysts assume that China deliberately drops the Yuan.
A weaker Yuan means cheaper exports, which is advantageous for the Chinese economy. Nevertheless, China will probably not drop the Yuan too far, as this could cause financial problems.
Bitcoin can benefit
Bitmex founder Arthur Hayes claimsthat the escalating customs war between China and the USA may mean good news for Bitcoin and the rest of the cryptom market. In the past, the devaluation of the Yuan has been more than once with a capital inflow for Bitcoin.
Also Ben Zhou, CEO from Coinbase, Hayes joins.
“China will try to devalue the (Yuan) as a counter -reaction to customs. Historically, when it falls (Yuan), a lot of Chinese capital flows into BTC,” summarizes Zhou.
The thought behind the perspective of Hayes and Zhou is that wealthy Chinese will invest their capital in crypto to protect it if the Yuan loses value. It can also cause Chinese to lose confidence in the central banks or the government, which could lead to Bitcoin as an alternative safe port.
Customs war far from the end
Yesterday Trump reacted directly to China’s counter reaction. In a message on Truth Social If he warns the country that further measures will follow if China does not withdraw the import tariffs. “The United States will raise additional tariffs of 50 percent in China, with effect from April 9th. In addition, all talks with China are ended with us with regard to their requested meetings,” said the president.
However, the Chinese government knows that it does not intend to adapt its plans. “If the USA carries out fealaled customs measures, China will resolve countermeasures to defend its own interests”, So the Chinese Ministry of Commerce.