Bullish on Bitcoin are Chinese investors?
Bullish on Bitcoin are Chinese investors?
The after effects of last week’s Tariffs Day still cause the earth to spin. Reacting to rising taxes and the danger of a protracted trade war are nations all over. China has not just sitting around observing; the CCP has responded with retaliatory levies already. Could this turmoil cause Chinese investors to become positive about bitcoin?
News over the weekend revealed further 34% tariffs applied on all American goods to China. Trump replied on Truth Social by threatening an additional 50% in tariffs should China not change.
The Chinese Ministry of Industry issued a statement on Tuesday stating, “The US threat to escalate taxes on China is an error on top of a mistake.” China would fight until the very last if the US maintains on its own path.
One may see a trade decoupling between the US and China not too far off.
Would the Yuan Experience a Drop in Value?
It is well known that China’s central bank has relaxed control over the yuan in order to increase export attractiveness. China has also suffered greatly on the back of up to 104% American taxes on Chinese import goods. Over 13 percent in a week the Hang Seng Index has tumbled; the Shenzhen Composite Index has lost over 10 percent in the same time frame.
Should the yuan decline, taxes won’t be as big of a factor since importing less expensive Chinese products will still be enticing.
This morning Ben Zhou, Founder and CEO of Bybit, offered some ideas on the X platform. Recent victim of the Lazarus Group, Bybit attempted to pilfers $1.5 billion from the top cryptocurrency exchange.
Zhou related in his piece how many capital migrated to bitcoin in 2013 and 2015 when China depreciated the yuan or RMB. He penned how “China will try to lower the yuan to counter the tariff, historically, wherever RMB decreases, a lot of Chinese capital flow into bitcoin, bullish for BTC.”
Bitcoin getting ready for a bull run?
Following lows of just under $75,000 yesterday, bitcoin has begun to climb once again. As investors search for rays of light, many analysts will hope that bitcoin can live up to its promise of a safe haven.
Should what Zhou has proposed come to pass, bitcoin may very easily once again return to $100,000. But will it reach $200,000 as some analysts have advised? Zhou is especially suited to observe this development as many Chinese investors had traditionally purchased bitcoin via Bybit, therefore avoiding the crypto prohibition in effect since 2021.
