As China warns of serious repercussions in response to Trump’s tariff demands, Bitcoin appears poised for a significant increase, following its historical pattern of flourishing during times of geopolitical unrest.
The rising geopolitical tensions are redirecting interest towards Bitcoin (BTC), with forecasts suggesting a possible surge reminiscent of 2015, when a devaluation of the yuan initially led to a downturn in Bitcoin’s value before it bounced back by year’s end.
In a recent analysis shared on social media, analysts from a blockchain firm in Singapore highlighted that the USD/CNY exchange rate is approaching critical resistance points, which could catalyze a Bitcoin breakout as the yuan encounters heightened pressure.
Despite short-term fears regarding U.S. Treasury yields, the analysts maintain an optimistic outlook on Bitcoin’s long-term prospects.
“In 2015, following the RMB devaluation, Bitcoin faced an initial sell-off but ended the year with significant gains. We may witness a similar pattern emerging now, echoing our bullish findings on gold from 18 months ago.”
Analysts
Geopolitical Conflict
This situation is closely linked to the increasing tensions between the U.S. and China, with Beijing declaring it will “fight to the end” in response to President Trump’s threat of a 50% tariff on Chinese products. The discourse has intensified, with Trump insisting on new tariffs unless China retracts its current retaliatory measures, which include 34% tariffs on American goods.
China has firmly asserted that additional tariffs will only serve to underscore the U.S.’s aggressive tactics, which they characterize as “blackmail.”
“The U.S. side’s threat to heighten tariffs against China is yet another blunder, revealing their blackmailing tendencies.”
A spokesperson for China’s commerce ministry
For Bitcoin, the escalating geopolitical risks and a weakening yuan could present a robust opportunity for growth, as investors may view cryptocurrency as a hedge against inflation and market instability. Analysts suggest that current prices might be “artificially suppressed” but are nonetheless “poised for a rapid upward movement.”