The post BTC Nears Death Cross, CNY Tumbles With Asian Markets After Trump Tariffs Put Focus on China’s Response appeared on BitcoinEthereumNews.com.

It’s a risk-off day in Asia as traders look to Beijing’s response to U.S. President Donald Trump’s sweeping reciprocal tariffs on China and other Asian nations. On Wednesday, Trump announced tariffs on imports from 180 nations, including trading partners identified as the worst offenders, such as China and the European Union. The president imposed a new 34% tariff on goods from China in addition to the existing 20% tax, bringing the total levy to 54%, the highest for any nation. The action did not affect Canada and Mexico. Observers say the ball is now in China’s court, and the nature of its retaliation could determine the market reaction. “Everything now depends on China. If China devalues the Yuan in response to today’s large, additional US tariffs, that sets off a global risk-off that hits EMs first and then – if it persists – spills back to the US. China has so far kept a very low profile. That may now end,” Robin Brooks, managing director and chief economist at the International Institute of Finance, said on X. Early Thursday, China urged the U.S. to lift tariffs while vowing immediate retaliation. Meanwhile, the yuan weakened to a seven-week low of 7 against the dollar alongside losses in the Asian equities and an impending death cross in bitcoin (BTC). Letting the yuan depreciate, which makes Chinese goods cheaper in international markets, is one way to counter the tariffs. That said, it could spell trouble for carry (currency) trades and scare financial markets, as observed in 2015 and 2018. Besides, potential intervention by the People’s Bank of China (PBOC) to stall a rapid yuan decline can boost the dollar, inadvertently weighing on risk assets, including stocks and cryptocurrencies. It’s no coincidence that Asian equities traded in the red at press time, with Japan’s…

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Filed under: News - @ April 3, 2025 5:23 pm