U.S. Tariffs on China May Boost Bitcoin Interest
U.S.tariffs on Chinese goods could led to a surge in Bitcoin demand. China is taking steps to protect its currency, the yuan, as the U.S. dollar’s influence grows.
On April 9, the People’s Bank of China asked major banks to cut U.S.dollar purchases. This move aims to support the weakening yuan. The yuan hit its lowest point as 2007, at 7.3498 per dollar.
The 104% tariffs on Chinese goods have hit the Chinese market hard.Bitcoin prices fell by 4.07% on the same day, trading at $76,407.
Some experts believe this situation could be good for Bitcoin. A weak yuan might push Chinese investors to seek safer options, like Bitcoin. Arthur Hayes, co-founder of bitmex, agrees. He thinks a weak yuan will drive investors to Bitcoin.
Bitcoin has been a safe haven during currency crises in Lebanon and turkey. However, some disagree. Binance’s report shows Bitcoin’s correlation with the S&P 500 is 0.47, while its link to gold is -0.22. This suggests Bitcoin is still seen as a high-growth asset.
As economic challenges deepen, views on Bitcoin might change. It could become more of a safe asset.
