Bitcoin Hits a Wall, Yet Declining Yuan Could Reignite Bullish Sentiment

Crypto Retreats as Tariffs Spark Global Market Jitters, Yuan Weakens

The crypto market’s recent optimism was short-lived as fresh trade tensions between the U.S. and China weighed heavily on investor sentiment. On Tuesday, the White House confirmed that a steep 104% tariff on Chinese goods will go into effect at midnight, reversing a brief relief rally across risk assets.

Bitcoin (BTC) initially climbed back to $80,000 but swiftly reversed course, slipping to $76,500 before stabilizing under $78,000. The top cryptocurrency is now down 1.2% on the day, while ether (ETH) has dropped nearly 4%, falling below the $1,500 level. The CoinDesk 20 Index — tracking a diversified basket of major crypto assets — declined 2.2%.

Crypto-related stocks weren’t spared either. Shares of bitcoin miner Bitdeer (BTDR) plunged 8.7%, MicroStrategy (MSTR) lost 5.3%, and Coinbase (COIN) slid 2.3%. One standout was DeFi Technologies (DEFTF), which jumped more than 10%, as speculation builds around a potential Nasdaq listing.

Meanwhile, Wall Street couldn’t hold onto early gains. After rising nearly 4% in morning trading, the S&P 500 and Nasdaq both ended the day in the red — down 0.5% and 0.7%, respectively.

The sharp U-turn in sentiment came as the Chinese offshore yuan (CNH) weakened significantly against the dollar, dropping to 7.4 — its lowest in years. With Beijing expected to allow further devaluation in response to the tariffs, bitcoin supporters believe it could spark capital flight, with BTC acting as a potential safe haven.

Arthur Hayes, former BitMEX CEO, highlighted the parallels with previous market cycles. “If not the Fed, then the PBOC will give us the juice. It worked in 2013, 2015 — and it can again in 2025,” he said. “Ignore China at your own peril.”

Crypto analyst Kirill Kretov of CoinPanel added that macro uncertainty is keeping markets on edge. “We’re seeing a mix of geopolitical tensions, trade wars, and economic slowdown fears,” he noted via Telegram. “Liquidity is thin, which means volatility is here to stay. Without broader participation, it’s unlikely we see a strong trend emerge in the near term.”