Bitcoin poised for surge as China pledges response to Trump’s 50% tariff move
With China threatening strong retaliation against Trump’s tariff demands, Bitcoin might be primed for a breakout, following its history of thriving amid geopolitical turmoil.
Geopolitical tensions seem to be drawing attention back to Bitcoin (BTC), with Matrixport forecasting a potential rally like in 2015, when the yuan’s devaluation triggered a sell-off before BTC rebounded by the end of the year.
In a recent research report on X, the analysts at the Singapore-based blockchain firm pointed out that the USD/CNY exchange rate is nearing key resistance levels, which could trigger a Bitcoin breakout as the yuan faces increasing pressure.
Despite short-term concerns over U.S. Treasury yields, the analysts still appear to be optimistic about Bitcoin’s long-term potential.
“In 2015, following RMB devaluation, Bitcoin initially experienced a sell-off but concluded the year with significant strength. We may see a similar scenario unfold now, as parallels emerge with our bullish gold research from 18 months ago.”
Matrixport
Geopolitical battle
This all ties back to the broader U.S.-China tensions, with Beijing saying it will “fight to the end” over President Donald Trump‘s threat of a 50% tariff on Chinese goods. The situation has gotten more heated, with Trump insisting on new tariffs unless China pulls back on its retaliatory measures, which already include 34% tariffs on U.S. goods.
China has taken a strong stance, warning that more tariffs will just highlight the U.S.’s aggressive approach, which they call “blackmailing.”
“The U.S. side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature.”
A spokesman for China’s commerce ministry
For Bitcoin, the growing geopolitical risk and a weaker yuan could create a good opportunity for growth, as investors look to crypto as a hedge against inflation and market uncertainty, the analysts suggest, adding that current prices “may be artificially suppressed,” but still “ready to surge upward rapidly.”
