Bitcoin rebounds as traders spot China ‘weaker yuan’ chart, but US trade war caps $80K BTC rally

Key Points

  • Bitcoin rebounds as traders anticipate China’s yuan devaluation benefiting BTC price.
  • US-China trade tensions cap Bitcoin's rally at around $80,000.
  • Arthur Hayes suggests that either the PBOC or the US Federal Reserve could fuel a BTC price rally.
  • AllianceBernstein predicts the Fed might cut rates in 2025 despite inflationary pressures.
  • Traders watch key Fibonacci retracement levels for potential support in Bitcoin's price.

Summary

Bitcoin experienced a rebound as traders observed a potential weakening of the Chinese yuan, which could benefit Bitcoin's price. However, the ongoing trade war between the US and China has limited Bitcoin's upward movement, keeping it around the $80,000 mark. Arthur Hayes, former CEO of BitMEX, highlighted that either the People’s Bank of China or the US Federal Reserve could provide the necessary conditions for a significant Bitcoin rally. Meanwhile, AllianceBernstein anticipates that the Federal Reserve might lower interest rates in 2025 to stimulate economic growth, despite inflationary pressures from tariffs. Amidst these developments, Bitcoin's price has shown stability, with traders closely monitoring key Fibonacci retracement levels for signs of support or further consolidation. The market's reaction to these economic indicators and geopolitical tensions will likely influence Bitcoin's price trajectory in the near term.

cointelegraph
April 8, 2025
Crypto
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