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Bitcoin (BTC) may soon gain value as Chinese investors look for ways to protect their money during the US-China trade dispute, according to crypto experts.
The US recently imposed a 50% tariff on Chinese goods, bringing total tariffs to 104%. This move sent Bitcoin temporarily below $76,000 while pushing China’s currency to dangerously low levels.
The yuan reached its 2023 low at 7.31 per US dollar after the tariff news, getting close to its weakest level in five years. This drop makes Chinese investors worry about losing money if they keep it in yuan.
Despite this dip, many crypto leaders see potential for Bitcoin to gain from these trade tensions. They look to past situations where currency problems in China led more people to invest in Bitcoin.
“CNY deval = narrative that Chinese capital flight will flow into $BTC. It worked in 2013, 2015, and can work in 2025. Ignore China at your own peril,” said Arthur Hayes, BitMEX co-founder and current CIO of Maelstrom, in an April 8 social media post.
Chinese investors have often turned to Bitcoin during tough economic times to get around government restrictions and protect their savings from losing value. When China decreased its currency value in 2015, Bitcoin’s price jumped from about $200 to $500 in just a few months. Market observers are now watching whether history will repeat itself.
Ben Zhou, CEO of crypto exchange Bybit, agreed with this view, noting that “historically, whenever RMB drops, a lot of Chinese capital flows into BTC, bullish for BTC.”
Richard Teng, CEO of Binance, suggested these economic problems might also increase interest in cryptocurrency. “This environment could accelerate interest in crypto as a non-sovereign store of value,” Teng wrote on X on Tuesday.
“Many long-term holders continue to view Bitcoin and other digital assets as resilient during periods of economic stress and shifting policy dynamics,” he added.
Matt Hougan, Chief Investment Officer at Bitwise, believes a weaker dollar could help Bitcoin. In a memo to investors, Hougan predicted, “We will move from a single reserve currency (the Dollar) to a more fractured reserve system, with hard money like bitcoin and gold playing a bigger role than it does today.”
Though Bitcoin faces short-term volatility during market uncertainty, many analysts think the US-China trade fight could ultimately benefit cryptocurrencies, especially if central banks lower interest rates to fight economic pressure.
As trade tensions continue, Bitcoin’s position as a hedge against economic uncertainty may strengthen, potentially reshaping how investors view digital assets during times of global financial stress.
