Bitcoin Struggles to Advance, but China’s Currency Slide Might Provide a Lift

Crypto Markets Slip as U.S. Tariffs Weigh on Sentiment, Bitcoin Pulls Back to $76.5K

The crypto market rally lost steam Tuesday as renewed U.S.-China trade tensions rattled global investor sentiment. Bitcoin (BTC), after briefly touching $80,000, reversed course and fell to $76,500, with ether (ETH) dropping below $1,500, down nearly 4% on the day. The CoinDesk 20 Index declined 2.2%.

The risk-off move coincided with the White House confirming 104% tariffs on Chinese goods, set to take effect at midnight. The news initially sparked gains in equities, but those quickly faded. The S&P 500 and Nasdaq, up nearly 4% intraday, ended down 0.5% and 0.7%, respectively.

Crypto-related stocks also took a hit. Bitdeer (BTDR) plunged 8.7%, MicroStrategy (MSTR) fell 5.3%, and Coinbase (COIN) slipped 2.3%. Notably, DeFi Technologies (DEFTF) bucked the trend, rising over 10% on speculation of a potential U.S. listing.

Currency markets responded swiftly, with the offshore yuan (CNH) weakening to 7.4 per dollar — its lowest level in years. Analysts suggest Beijing may allow further depreciation, potentially triggering capital outflows into alternative stores of value such as bitcoin.

“History has shown that a weakening yuan can be a tailwind for BTC,” said Arthur Hayes, citing similar moves in 2013 and 2015. “This setup has potential.”

Kirill Kretov of CoinPanel added, “The market is navigating a minefield of geopolitical risks and thin liquidity. Until these macro uncertainties subside, expect choppy conditions.”

Bitcoin’s resilience amid macro volatility remains a focal point for investors looking for asymmetric hedges — especially as traditional markets struggle to find direction.

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