European Stocks Stumble, But Chinese Market Gains Could Be Harbinger of Global Upturn

Bitcoin Rally Stalls, But Sliding Yuan Could Be Bullish Catalyst

April 8, 2025 – The bitcoin rally, which had been gaining momentum in recent weeks, appears to have stalled, with the cryptocurrency's price falling by around 5% over the past 24 hours. However, some analysts believe that the sliding value of the Chinese yuan could be a bullish catalyst for the asset.

The yuan has been under pressure in recent days, with the Chinese currency falling to a new low against the US dollar. This has led to concerns about the country's economic outlook, with some analysts warning that the yuan's depreciation could have far-reaching implications for the global economy.

But for bitcoin, the sliding yuan could be a positive development. The cryptocurrency's price has historically been closely tied to the value of the yuan, with many investors viewing it as a hedge against the Chinese currency's volatility.

"If the yuan continues to slide, it could be a major boost for bitcoin," said Michael Novogratz, a well-known bitcoin investor. "The Chinese currency's depreciation could lead to a surge in demand for the cryptocurrency, as investors seek to protect themselves against the risks associated with the yuan's volatility."

Other analysts agree, citing the strong correlation between the yuan and bitcoin's price movements. "The yuan's depreciation is a major concern for investors, and it's likely to drive demand for bitcoin as a safe-haven asset," said Alex Krüger, a cryptocurrency analyst.

Despite the potential bullish catalyst, some analysts remain cautious, citing the cryptocurrency's recent volatility. "Bitcoin's price can be highly unpredictable, and it's not clear whether the yuan's depreciation will be enough to drive a sustained rally," said Tim Draper, a prominent bitcoin investor.

For now, the bitcoin market remains uncertain, with the cryptocurrency's price stuck in a narrow trading range. However, the sliding yuan could prove to be a key catalyst for a potential rally, should the cryptocurrency's price begin to move higher.