China eased its grip on the yuan (CNY) on Tuesday, allowing it to depreciate beyond a key level, likely in response to President Donald Trump’s aggressive tariffs.
Crypto analysts anticipate that the yuan’s depreciation could favor bitcoin (BTC), drawing parallels to similar events from a decade ago.
Early Tuesday, the People’s Bank of China (PBOC) set the so-called daily yuan fix at 7.2038 per dollar on Tuesday, the weakest since September. The yuan isn’t a free float currency like the USD, euro and other G-7 nations and is allowed to trade in a range of 2% on either side of the daily fix announced at 9:15 a.m. Beijing time.
The 7.2 level has been considered a “harder line in the sand” for the central bank for years. The USD/CNY pair has traded above the said level a few times since 2022 but never established a foothold.
That could change with the PBOC explicitly setting the daily mid-point beyond the 7.2 level. In other words, the…
