What the U.S. did:
April 2: Donald Trump imposed 10% "reciprocal tariffs" on all imported goods; for China, the total tariff increased to 54%.
April 7: The U.S. threatened an additional 50% tariff if China does not cancel its 34% tariffs.
They are also threatening to completely stop negotiations with China and start talks with other countries.
China's Response:
April 4: China announced a 34% tariff on all goods from the U.S., effective April 10.
April 8: The PBOC (People’s Bank of China) set the yuan exchange rate above 7.20 — this is the "devaluation line", for the first time since 2023.
🔷 A hint at the beginning of controlled yuan devaluation.
💱 Why China is devaluing:
To soften the effect of U.S. tariffs by making exports cheaper.
However, this creates the risk of capital flight (China holds $60 trillion in deposits — 3 times more than in the U.S.).
Impact on BTC:
In 2015–2016, when China devalued the yuan, Bitcoin rose from $200 to $20,000.
A potential new devaluation could again trigger increased demand for BTC as a hedge against yuan depreciation.
❗ Conclusion: China crossed an important currency “line,” the U.S. is increasing pressure. Historically, such moves have often been followed by capital flight into Bitcoin and other alternative assets.
