Bitcoin Dips Below $76,000 Amid Trade War Fears, Weaker Yuan Could Offer Bullish Hope
Bitcoin (BTC) is currently trading at approximately $75,300, down over 5.7% in the past 24 hours, as the cryptocurrency market reacts to
Live BTC/USD Chart
Bitcoin (BTC) is currently trading at approximately $75,300, down over 5.7% in the past 24 hours, as the cryptocurrency market reacts to escalating global trade tensions. The leading digital asset BTC/USD has broken below the critical $80,000 support level for the first time since November 2024, marking a significant 30% decline from its all-time high of $108,786 reached on January 20 this year.
The immediate catalyst for this downward pressure came as the White House confirmed the implementation of 104% additional tariffs on Chinese imports, set to take effect at midnight on April 9. This announcement triggered a broad market selloff, with both cryptocurrencies and traditional equities reversing earlier gains. The S&P 500 closed April 8 with a 1.6% loss after initially rising 4%, while crypto equities saw sharp declines with bitcoin miner Bitdeer down 8.7% and MicroStrategy falling 5.3%.
Chinese Yuan Devaluation: A Potential Bullish Catalyst for Bitcoin Price
In a surprising turn of events that might help Bitcoin, the growing trade conflict sees China letting its currency weaken against the US dollar. On April 8, the yuan-to– USD exchange rate dropped to its lowest level since 2023; analysts believe Beijing is purposefully allowing greater free fluctuations of its currency in retaliation to Trump’s tariffs.
Ben Zhou, the bitbit CEO, pointed out this scenario as perhaps “bullish for BTC,” noting that a weaker yuan might cause “a lot of Chinese capital flow into Bitcoin” as investors try to guard their wealth from devaluation of the currency. This viewpoint fits historical trends seen in past yuan weak years 2013, 2015, and prior times of capital flight from China.
Founder of BitMEX Arthur Hayes also observed this link and speculated that Beijing’s trade war-related currency policy would offer the required environment for Bitcoin’s next significant price movement.
BTC’s Institutional Investors Show Resilience Despite Market Turbulence
With key U.S. indexes down more than 20% from their all-time highs, traditional equities markets have seen great volatility; spot Bitcoin ETF flows have demonstrated amazing consistency. Under $300 million cumulative withdrawals from spot Bitcoin ETFs over the past two weeks suggest institutional investors have faith in Bitcoin’s long-term value proposition.
This discrepancy between conventional market panic and conduct of Bitcoin ETF holders points to institutional investors maybe seeing Bitcoin as a possible hedge in times of macroeconomic uncertainty and currency volatility.
U.S. Bitcoin Mining Competitiveness at Risk
The new tariff measures of the Trump government might have important effects on the mining of Bitcoin. Countries where significant mining rig manufacturers like Bitmain, MicroBT, and Canaan have operations—U.S.-based miners face significantly higher equipment costs—with tariffs of 36%, 32%, and 24% placed on Thailand, Indonesia, and Malaysia correspondingly.
Under the new tariff structure, a mining equipment originally costing $1,000 would cost about $1,240 in the United States, said Hashlabs Mining CEO Jaran Mellerud. “A 22% price increase on machines can make operations financially unsustainable in an industry as cost-sensitive as Bitcoin mining,” Mellerud said.
Ironically, these tariffs may help mining companies outside of the United States when manufacturers reroute extra inventory meant for the American market to other areas at less cost. This change might help to lower the around 40% total hashrate of Bitcoin from the United States.
BTC/USD Technical Indicators Signal Potential Bottom Formation
Technical analysis indicates Bitcoin might be nearing a possible bottom despite the general negative attitude. Declining to 43, the weekly Relative Strength Index (RSI) is lowest reading since the start of the bull market in early 2023. Analyst Rekt Capital claims that past trends point to BTC perhaps finding a floor close to the $70,000 mark before showing a comeback.
Rekt Capital said, “Whenever Bitcoin’s Daily RSI crashed into the sub-28 RSI levels, the actual price bottom would be -0.32% to -8.44% lower than the price when the RSI first bottomed.” Suggesting that “anything from current prices to ~$70,000 is likely to be the bottom on this correction,” the company said.
Especially, the $70,000 level is quite similar to the past all-time high of Bitcoin from the bull market cycle, hence offering significant psychological support.
Bitcoin Price Outlook: Uncertain Recovery Path
Particularly the development of world trade tensions and the Federal Reserve’s monetary policy, Bitcoin’s near-term price path stays somewhat closely linked to more general macroeconomic factors. With “only a recession” perhaps causing earlier rate decreases, Morgan Stanley’s revised projection shows that the U.S. Federal Reserve may keep interest rates at 4.25%–4.50% until March 2026.
Given worries about possible U.S. dollar devaluation, market analysts believe that protracted trade conflicts and financial difficulties could finally drive investors toward limited assets like Bitcoin. Still, as CoinPanel’s Kirill Kretov pointed out, “We are in a time of increased uncertainty right now… We are not likely to witness a major directional trend until more people adapt to and benefit from this surroundings.”
Futures trading volume has surged by 64% over the past week while open interest has dropped by 19% over two weeks. The market seems to be in a transitional state, maybe signifying the end of a corrective phase and the start of an accumulation period maybe preceding the next major price movement.
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