China’s Yuan Depreciation Beyond 7.2 Sparks Bitcoin Optimism Among Analysts
China’s recent decision to allow the yuan to weaken beyond the critical 7.2 per dollar level has drawn attention from cryptocurrency analysts, who speculate that this move could benefit Bitcoin (BTC). The People’s Bank of China set the daily yuan fix at 7.2038, the weakest since September, amid potential responses to external economic pressures. Analysts draw parallels to past events where currency depreciation coincided with increased interest in Bitcoin as a hedge. This development raises questions about Bitcoin’s potential role in a shifting global financial landscape.
China Fixes Yuan Beyond 7.2 Level, Bitcoin Analysts Optimistic
China eased its grip on the yuan (CNY) on Tuesday, allowing it to depreciate beyond a key level of 7.2 per dollar, possibly in response to President Donald Trump’s tariffs. Crypto analysts predict that this depreciation could favor Bitcoin (BTC), drawing comparisons to similar events a decade ago. The People’s Bank of China set the daily yuan fix at 7.2038 per dollar, the weakest since September. The yuan isn’t a free-float currency and is allowed to trade within a 2% range of the daily fix. The 7.2 level has been a significant psychological barrier for the central bank for years. Analysts anticipate that the yuan’s depreciation could lead to increased interest in Bitcoin as a hedge against currency fluctuations.
Goldman Sachs Projection Could Impact Bitcoin Price
Investment banking giant Goldman Sachs has increased the odds of a recession in the United States. The bank, along with other institutional giants, expects more policy rate cuts by the Federal Reserve in response to the economic downturn. According to Goldman Sachs’ forecast, the Feds will lower interest rates by 25 basis points in each meeting three times, aligning with similar sentiments on Wall Street. Analysts expect Bitcoin’s (BTC) price to climb after a dip below $80k due to these potential rate cuts.
Freedx Secures Key DASP License in El Salvador
Freedx, a centralized exchange suitable for both crypto newcomers and experienced traders, has been granted a Digital Asset Service Provider (DASP) license by El Salvador’s Comisión Nacional de Activos Digitales (CNAD). This milestone underscores Freedx’s commitment to becoming a trusted, compliant, and accountable platform in the crypto ecosystem. El Salvador’s crypto-forward policies began in 2021 when it became the first country to recognize Bitcoin (BTC) as legal tender. The enactment of its Digital Assets Law in 2023 positioned the country as a global hub for digital assets, attracting major industry players.
Bitcoin Resists As S&P And Gold Falter Under Economic Tensions
In the midst of a stock market debacle caused by Trump’s new tariffs, Bitcoin shows unexpected resilience. While the S&P 500 and Nasdaq collapse, and gold struggles, BTC gains ground. This movement shakes up certainties about its correlation with traditional markets, reigniting debate on whether Bitcoin is establishing itself as a standalone asset in systemic crises. On April 2, Donald Trump announced tariffs on most American imports, causing sharp tensions in traditional markets. While stocks plummeted heavily, Bitcoin stood out with its relative stability.
Bitcoin Analysts Spot Big Opportunity as China’s Yuan Hits Lowest Level Since 2023
China has surprisingly allowed its currency, the yuan, to drop to its weakest level since 2023 in response to increasing U.S. trade tariff pressure. This move is creating ripples in financial markets and could lead to increased interest in Bitcoin. Experts at 10x Research recall a similar situation in 2015 that resulted in a significant jump in Bitcoin’s price, hinting at the possibility of another major rise for crypto. China has historically tightly controlled the yuan, but the People’s Bank of China recently allowed it to weaken.
