China’s currency slips to multi-year lows as the PBOC intervenes, prompting speculation about Bitcoin’s role in a shifting financial landscape.
U.S. Tariffs Hit Hard as Yuan Falls to 18-Year Low
China’s currency is under renewed pressure as the nation grapples with the fallout from the United States’ sweeping 104% tariffs on all Chinese goods. On April 9, the yuan dropped to 7.3498 per dollar, its weakest level since December 2007, prompting action from the People’s Bank of China (PBOC).
In an attempt to slow the yuan’s decline, Chinese authorities reportedly instructed major state-run banks to cut their U.S. dollar purchases, aiming to prop up the domestic currency in the face of deteriorating trade conditions.
This financial turbulence follows President Donald Trump’s aggressive tariff escalation, which has disrupted global markets and triggered new questions about the future of safe haven assets.
Bitcoin in Focus as Currency Instability Rises
As the yuan weakens and U.S.–China tensions deepen, Bitcoin is re-emerging as a potential hedge against fiat volatility. While the leading cryptocurrency fell over 4% on April 9, trading at approximately $76,407, analysts are already speculating that the current turmoil may ultimately favor Bitcoin in the longer term.
Arthur Hayes, co-founder of BitMEX, commented on the situation, suggesting that a weaker yuan could push Chinese investors toward Bitcoin as an alternative store of value.
Similar patterns have been observed in countries like Lebanon and Turkey, where investors flocked to Bitcoin amid collapsing local currencies and hyperinflation — viewing the asset as a relatively stable option despite its own volatility.
Is Bitcoin Really a Safe Haven?
Still, the debate is far from settled. While some analysts view Bitcoin as an inflation hedge or geopolitical shelter, others argue that it continues to behave like a risk on asset, reacting to global uncertainty much like equities.
According to Binance’s latest market report, Bitcoin’s correlation with the S&P 500 has risen to 0.47, suggesting a stronger link to stock market sentiment. Meanwhile, its correlation with gold a traditional safe haven — has dropped to –0.22, further challenging the narrative that Bitcoin moves in opposition to fiat and economic risk.
That said, such correlations are fluid and may shift as the economic landscape evolves. As the trade war drags on and currency devaluation accelerates, Bitcoin’s unique value proposition as a borderless, non-sovereign asset could become more compelling to investors seeking financial autonomy.
Final Thoughts
The yuan’s fall to 2007 levels marks a key moment in the escalating U.S. China trade conflict. With both currencies under pressure and global markets growing increasingly volatile, Bitcoin’s role in the macroeconomic puzzle may be set to change.
Whether Bitcoin cements itself as a true safe haven remains to be seen. But in a world where traditional currency systems are under strain, the crypto market is likely to remain at the center of the conversation.
