Here's how China's tariff dodge silently rocks bitcoin

China's response to U.S. tariffs, particularly its tight management of the yuan's exchange rate, is indirectly impacting global cash flows and, consequently, the Bitcoin market. JPMorgan notes that this exchange rate management helps Beijing maintain export competitiveness and contain deflation, but it amplifies dollar-led liquidity cycles during trade stress. This means Bitcoin, a macro-sensitive asset, tends to fall when tariff-led risk-off scenarios cause dollar liquidity scarcity and rebounds when tensions ease, mirroring trading patterns seen previously. This mechanism contrasts with the U.S. impact on crypto, which flows directly through capital movements. China's resilience, evidenced by rising global market share despite reduced U.S. exports, is attributed to diversification and maintaining a stable, range-bound yuan, prioritizing export competitiveness over significant appreciation. This low-volatility management framework shifts the focus for crypto markets toward liquidity transmission rather than sustained yuan strength.

(Source：CoinDesk)