Yuan Plunges After Tariffs — Bitcoin Gains Attention

China’s yuan dropped to its lowest level since 2007 after US tariffs took effect. As both the yuan and dollar face instability, analysts debate whether Bitcoin can become the next safe haven asset.

Beijing limits dollar purchases to support the yuan

On April 9, China’s central bank asked major banks to reduce USD purchases. The move came as the yuan weakened sharply due to new US tariffs.

By the end of the trading day, the yuan stood at 7.3498 — its lowest since December 2007.

Bitcoin’s hedge potential rises

Bitcoin dropped 4% on April 9, trading at $76,407. However, analysts see potential upside. Arthur Hayes of BitMEX said a weaker yuan may push Chinese investors toward Bitcoin.

Past crises in countries like Lebanon and Turkey showed similar patterns, with BTC seen as a safer asset.

Risk-on or safe haven?

Some still argue Bitcoin acts more like a risk asset.

Binance data shows BTC’s correlation with the S&P 500 rose to 0.47, while gold correlation fell to –0.22. Despite current volatility, prolonged uncertainty may gradually shift perception in favor of Bitcoin as a defensive asset.