Matrixport has raised expectations that Bitcoin might rally as USDCNY hits pivotal resistance markers.

Cryptocurrency service provider Matrixport In a recent market analysis, it was noted that following the depreciation of the Chinese RMB in 2015, Bitcoin initially suffered a sell-off but ultimately concluded the year strong. This analysis suggests we might witness a similar trajectory now, reminiscent of an earlier bullish forecast on gold from 18 months ago.

Matrixport emphasizes that the current USDCNY exchange rate is nearing crucial technical resistance points, echoing their past assumptions regarding gold prices. This situation could indicate that Bitcoin's prices are currently being held down artificially, with the potential for a sharp upward movement soon. Additionally, they observed a noteworthy correlation between the USDCNY rate and the 10-year US Treasury yield, noting that while yields have recently fallen, any recovery could impose short-term challenges on Bitcoin. upward trajectory .

In the midst of persistent uncertainties in global monetary policy, observers are keenly focused on how China's economic maneuvers might influence Bitcoin. Notably, BitMEX co-founder Arthur Hayes pointed out that a devaluation of the Chinese yuan (CNY) could lead to an influx of capital into Bitcoin, similar to trends seen in 2013 and 2015. With the USDCNH hitting five-year highs, speculation regarding potential shifts in Chinese policies is at an all-time high.

Arthur Hayes further connects the idea of the yuan's depreciation with a possible increase in Bitcoin's value, suggesting that under President Xi Jinping's leadership, China’s independent monetary strategies could lead to an intentional weakening of the yuan to enhance economic competitiveness. He argues that this environment is ripe for Bitcoin, as Chinese investors may seek alternative assets as the yuan's value declines.

Bitcoin has managed to bounce back to the $79,000 mark amidst ongoing market turbulence.

At the moment, Bitcoin is trading at $79,134, which represents a 3.26% rise in just 24 hours. This rebound comes after a drop to $74,400 yesterday, largely due to the volatility sparked by recent announcements from the US government impacting international markets, including cryptocurrencies. Investors are now on the lookout for further developments in trade discussions, hoping to see a trend towards greater market stability. new tariffs Currently, the total market capitalization for cryptocurrencies globally stands at $2.5 trillion, showing a healthy 3.83% increase within the last day. During the same period, the overall cryptocurrency trading volume reached $161.01 billion, exhibiting a 3.67% rise according to CoinMarketCap data.

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