Trump vs. China: How does the trade war affect Bitcoin?
The post Trump vs. China: How does the trade war affect Bitcoin? appeared on BitcoinEthereumNews.com.
BTC bounced +10% after Trump’s 90-day tariff pause. Per analysts, a China tariff deal could rally BTC or cap it. Bitcoin [BTC] jumped 10% on the 9th of April to $83.5K after President Donald Trump announced a 90-day pause on tariffs against other countries, except China. The relief rally was seen across U.S. equities, too. But the U.S.-China tariff woes could affect BTC. Trump hiked tariffs on Chinese imports to 125% after Beijing played hardball with an 84% retaliatory tariff increase against the U.S. Now, the tariff showdown could determine the next BTC movement, per analysts, but some views were mixed. Navigating BTC’s tariff woes It’s worth noting that China was ready for a deal, according to the latest update by President Trump. Per analyst Joe McCann, a likely ‘deal’ would send BTC higher, noting that such an outcome wasn’t priced in. “If a China deal comes, market explodes. If it doesn’t, it’s already priced. Trump has signaled max pain for China and is willing to negotiate. Market can only re-price higher.” McCann added that an indicator of such a positive agreement with China would be the Yuan (CNY) currency rallying higher against the US dollar (USD). Unfortunately, China was pushing for the opposite outcome — a weak CNY. Bitwise’s head of alpha, Jeff Park, was worried that this would be ‘negative to risk assets,’ including BTC. “With what irreversibly happened with weakened yuan now exporting deflation + 10% tariff creating growth drag, the net outcome is still negative for risk assets especially if 10yr stays above 4%.” For his part, BitMEX founder Arthur Hayes echoed similar contention but added that it would end up in money printing by the Fed and boost BTC. “No deal, PBOC continues a very gradual Yuan weakening. Shit ‘bout to get spicy. Luckily, $BTC…
Filed under: News - @ April 10, 2025 11:19 pm