Yuan drops to 2007 lows after tariffs, could Bitcoin be the new safe haven?

American prices on China can turn against the country because the country reduces dollar purchases, while the instability of currencies on the two fronts feeds interest in bitcoin.

China rushes to defend its currency in the middle of the impact of American historical prices, fueling a renewed Bitcoin demand (B). Wednesday April 9, the China Popular Banque has been educated The main Chinese banks to reduce their US dollar purchases to support the weakening of the Yuan.

The Chinese domestic market is still in shock from the effects of American prices of 104% on all Chinese goods, which have entered vigue 7,3498 per dollar At the end of the interior negotiation session, representing its lowest level since December 2007.

Geopolitical uncertainty has weighed on cryptographic active ingredients at all levels. Bitcoin fell 4.07% on April 9, trading at $ 76,407. Despite the short -term pressure, several analysts believe that the situation could ultimately prove to be optimistic for bitcoin.

Bitcoin could benefit from a weak dollar, yuan

Analysts of a Singapore Blockchain Blockchain company suggested that a weak yuan could trigger a Breakout for Bitcoin. Arthur Hayes, co-founder of Bitmex, echoes this feeling. He said that a weak yuan would encourage Chinese investors to look for security shelters elsewhere, Including bitcoin.

This analysis is based on the role of Bitcoin as a cover against inflation, which is certainly for certain investors. For example, during the currency of crises in Lebanon and TürkiyeMany investors have asked for bitcoin as a relatively stable asset. In other words, at least compared to their own fiduciary currencies.

However, other analysts dispute this story, suggesting that Bitcoin always behaves more like a risk asset. For example, Binance’s latest report underlined The correlation of this bitcoin with the S&P 500 reached 0.47 while its correlation with gold fell to –0.22.

This suggests that in spite of continuous geopolitical tension, traders still largely treat bitcoin as a high -growing and risk asset rather than defensive inflation coverage. However, as economic pain deepens, this perception could start to change.