With Bitcoin's recent dip to $74,000 and rebound to $80,000, Bybit co-founder and CEO Ben Zhou pointed out the potential for yuan devaluation as a catalyst for Bitcoin's next surge.
Yuan Devaluation and Its Impact on Bitcoin
Zhou argues that a sharp depreciation of the yuan, which may be employed by the People's Bank of China to counter U.S. tariffs and maintain export competitiveness, could lead to significant capital flight into Bitcoin. He warns traders, "Ignore China at your own peril."
Historical Examples of Capital Influx into Bitcoin
Zhou emphasizes that this is not just theory, citing past cycles in 2013, 2015 (when the PBOC devalued the yuan against the dollar), and 2017 (following capital outflow crackdowns) when Chinese investors reportedly sought...
Conclusions from Ben Zhou
Ben Zhou reminds the market participants of Bitcoin's historical role as a global hedge asset, urging them to pay attention to signals from China that may precede significant changes.
Thus, the potential devaluation of the yuan may serve as a significant factor influencing demand for Bitcoin, considering previous historical examples that highlight the importance of Chinese economic signals.
