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China’s vow to ”fight to the end” Donald Trump’s tariffs may lead to yuan depreciation and easing policies that will help boost Bitcoin, analysts said.
China’s response came after US President Donald Trump said on April 7 that he would impose additional 50% tariffs on China imports if it does not reverse its 34% reciprocal tariffs on the US.
“The US threat to escalate tariffs on China is a mistake on top of a mistake,” China’s Commerce Ministry said in an April 8 statement. ”If the US insists on its own way, China will fight to the end.”
China eased its grip on the yuan today, allowing it to depreciate to 7.2038 per dollar, the weakest it’s been since September. The 7.2 level has been considered a line in the sand for China’s central bank for years, and the decision to let the currency weaken beyond this level could signal a shift to managed depreciation of the yuan.
Bitcoin Could Surge Like In 2015
Analysts suggest that a weaker yuan could boost Bitcoin, as history has shown that Chinese investors often turn to cryptocurrency during times of currency depreciation.
“The U.S. is now pursuing full-scale economic pressure on China, which may be forced to respond with quantitative easing and a currency devaluation,” said Markus Thielen, founder of 10x Research in said in an April 7 note. ”If so—and if China permits capital flight—Bitcoin could surge, much like it did in 2015.”
Bybit CEO and founder Ben Zhou said in a post on X that “a lot of Chinese capital flows into BTC” whenever the yuan drops. Yuan depreciation is “bullish for BTC,” he said.
China is also discussing whether to move forward easing measures to help offset the impact of Trump’s tariffs on the economy, Bloomberg reported on April 7.
History Shows A Weakening Yuan Boosts Bitcoin
Historically, Bitcoin has rallied whenever the yuan dropped as local investors turn to BTC to preserve their wealth, according to BitMEX founder Arthur Hayes.
He noted in an April 8 X post that when the Chinese central bank weakened the yuan in 2013 and 2015, it boosted the price of Bitcoin, adding that history could repeat itself as the central bank softens the tariffs blow by allowing the yuan to depreciate, making China’s exports cheaper in overseas markets.
If not the Fed then the PBOC will give us the yachtzee ingredients.
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. pic.twitter.com/LAOeQZEjZt
— Arthur Hayes (@CryptoHayes) April 8, 2025
“If not the Fed [Federal Reserve], then the PBOC [People’s Bank of China] will give us the Yahtzee ingredients” to resume the crypto market bull run, Hayes wrote in his post.
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