The ongoing trade dispute between the United States and China has rattled global markets and might be driving investors toward cryptocurrency. Bitcoin prices jumped from $74,100 to $79,050 in recent trading, a gain of more than 3.1% as investors respond to escalating tariff threats. Trading volumes spiked 75% to $80 billion, according to market data, suggesting heightened interest amid economic uncertainty.
Trump Threatens Over 100% Total Tariffs On Chinese Goods
United States President Donald Trump has stated that he will impose a further 50% tariff on imports from China, taking the overall tariff rate to 104% when added to the current 20% and 34% tariffs. The US imports approximately $435 billion worth of goods from China annually.
Trump has given China an April 8 deadline to drop its 34% tariff on US goods or risk these further measures, according to reports. Chinese officials have pushed back firmly, saying they will “fight until the end” against the threatened tariffs, paving the way for further economic tension.
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
Chinese Yuan Weakness Could Pump Up Bitcoin
BitMEX co-founder Arthur Hayes believes Chinese money could begin flowing into Bitcoin as a result of these tensions. By his estimates, any decline in the Chinese yuan (CNY) might encourage capital flows to Bitcoin, repeating a pattern from 2015 and 2013.
The USDCNH exchange rate is close to five-year highs, leading to speculation about possible policy moves. Hayes connects yuan weakness with Bitcoin performance explicitly, asserting that President Xi Jinping’s independent monetary policy is aimed at maintaining economic competitiveness through currency adjustments.
Such an arrangement, Hayes opines, gives Bitcoin favorable conditions since Chinese investors are looking for alternative means of value storage.
Image: Vecteezy
Market Observers Watch For Policy Response
While some analysts doubt that Chinese leadership will change its fundamental approach, the yuan’s current downward trend suggests authorities might step in soon to stop the decline.
The situation has created uncertainty in global markets, with investors carefully watching for signs of intervention or policy changes from either government.
The relationship between currency devaluation and cryptocurrency investment has historical precedent, though market conditions have changed significantly since previous cycles.
Bitcoin Price Targets $82,000 Resistance Level
In technical analysis quoted by reports, the recent price action of Bitcoin has been in the form of a “falling wedge pattern” with a high bounce from the important support points.
The crypto is currently quoted at $79,105, 4.5% above recent lows. Market observers expect Bitcoin to reach the $82,000 level of resistance where heavy selling pressure may be built up.
The sharp jump in daily trading volumes shows an uptick in market participation as investors position themselves under the economic uncertainty brought about by the trade tension.
Featured image from Gemini Imagen, chart from TradingView
