Bitcoin (BTC) May Soon Gain Value as Chinese Investors Look for Ways to Protect Their Money

Bitcoin (BTC) may soon gain value as Chinese investors look for ways to protect their money during the US-China trade dispute, according to crypto experts.

As the US-China trade dispute deepens, Chinese investors may soon turn to Bitcoin (BTC) to protect their money, according to crypto experts.

The US recently announced a 50% tariff on Chinese goods, bringing the total to 104%. This move pushed Bitcoin below $76,000 and China’s currency to critically low levels.

The yuan reached its 2023 low at 7.31 per US dollar after the tariff news, getting close to its weakest level in five years. This drop has increased worries among Chinese investors about losing money if they keep it in yuan.

However, despite the recent BTC dip, many crypto leaders see potential for the coin to gain from these trade tensions. They point to past situations where currency problems in China led more people to invest in Bitcoin.

“CNY deval = narrative that Chinese capital flight will flow into $BTC. It worked in 2013, 2015, and can work in 2025. Ignore China at your own peril,” said Arthur Hayes, BitMEX co-founder and current CIO of Maelstrom, in an April 8 social media post.

Chinese investors have often used Bitcoin during tough economic times to get around government restrictions and protect their savings from losing value. When China decreased its currency value in 2015, Bitcoin’s price quickly rose from about $200 to $500 in just a few months. Now, market watchers are observing whether history will repeat itself.

Ben Zhou, CEO of crypto exchange Bybit, agreed with this view, noting that “historically, whenever RMB drops, a lot of Chinese capital flows into BTC, bullish for BTC.”

Richard Teng, CEO of Binance, suggested that these economic problems might also increase interest in cryptocurrency. “This environment could accelerate interest in crypto as a non-sovereign store of value,” Teng wrote on X on Tuesday.

“Many long-term holders continue to view Bitcoin and other digital assets as resilient during periods of economic stress and shifting policy dynamics,” he added.

Matt Hougan, Chief Investment Officer at Bitwise, believes that a weaker dollar could help Bitcoin. In a memo to investors, Hougan predicted, “We will move from a single reserve currency (the Dollar) to a more fractured reserve system, with hard money like bitcoin and gold playing a bigger role than it does today.”

Although Bitcoin faces short-term volatility during market uncertainty, many analysts believe that the US-China trade fight could ultimately benefit cryptocurrencies, especially if central banks lower interest rates to fight economic pressure.

As trade tensions continue, Bitcoin’s position as a hedge against economic uncertainty may strengthen, potentially reshaping how investors view digital assets during times of global financial stress.