Keynote
China has adopted unconventional financial policies to tackle the impact of US tariffs. Bitcoin and risky assets could benefit from long-term financial changes.
Bitcoin
BTC
$83 562
24-hour volatility:
2.2%
Market Cap:
$1.66 t
Vol. 24H:
$26.86 b
the world’s largest digital assets could be at the edge of its major price range. This speculation is growing as China adjusts its monetary policy. This is a change that could lead to greater demand for Bitcoin and other cryptocurrencies.
Potential positive changes appear to be imminent as Bitcoin and risk-on assets remain sensitive to the financial policies of the highest economy like China.
As China responds to economic pressure, the yuan becomes weaker
The People’s Bank of China (PBOC) has launched a move to allow the Yuan to weaken beyond its critical levels. The move sets the daily reference rate at 7.2038 against the dollar. With each update, this is the lowest revision since September, indicating a change in the way central banks manage their currency.
It is worth noting that the original cannot float freely like the US dollar or euro. Instead, it trades within the 2% band on both sides of the set rate announced each morning by the central bank.
Many experts believe the decision is a response to new pressures from the US. Since returning to the White House, President Donald Trump has been imposing tariffs on Chinese products. China’s move aims to make exports more competitive by keeping their currency weaker.
Furthermore, the 7.2 yuan level per dollar has long been an important psychological barrier. In the past, central banks have stepped in when market forces pushed beyond that level. However, this time the bank has retreated and the original can officially pass it.
According to the development, some analysts believe this could mark the beginning of Chinese authorities’ broader, controlled depreciation strategies. Moves that could benefit risk-on assets.
Bitcoin could benefit from flying to China’s capital
Historically, there has been a growing interest in deducting money from China when the Yuan loses its value. In the past, some of that money has flowed into Bitcoin. Crypto experts have already noticed similarities between today’s situation and events in 2013 and 2015, when a significant rise in Bitcoin prices followed the original devaluation.
In his recent X-Post, former Bitmex CEO Arthur Hayes revealed that the PBOC might indirectly do so if the US Federal Reserve does not take steps in favor of Bitcoin. The devaluation of the original in the past supports the story of the Chinese capital that flows, particularly in Bitcoin.
If it’s not the Fed, PBOC will give you the ingredients of Yozzy.
Cny Deval = The story of China’s capital flight flowing to $BTC.
It works in 2013, 2015, and in 2025.
Ignore China for your own risk. pic.twitter.com/laoeqzejzt
– Arthur Hayes (@cryptohayes) April 8, 2025
Still, several factors may make this difficult. China, for example, has strict regulations on cryptocurrency activities. According to the new regulations, banks will need to monitor and report international transactions, particularly those related to crypto.
Analyst Markus Thielen also said legal risks for individuals using code in capital movements have grown even faster since August 2024.
Coinspeaker reported that crypto market liquidation jumped to $1.4 billion after Bitcoin prices fell 8% earlier this week. The BTC price fell to $76,100. However, when writing, CoinMarketCap data shows that Bitcoin was trading at $79,117.01, which saw Bitcoin increase by over 3% in the last 24 hours.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. The purpose of this article is to provide accurate and timely information, but should not be considered financial or investment advice. Market conditions can change quickly, so we recommend that you review your information yourself and consult with an expert before making a decision based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who writes about real-life applications of blockchain technology and innovation, promoting general acceptance and global integration of emerging technologies worldwide. His desire to educate people about cryptocurrency inspires his contributions to well-known blockchain media and sites.
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