1 week ago
Bitcoin (BTC) risks becoming portion of a “classic bull trap” erstwhile the US-China commercialized warfare takes its adjacent step, investigation warns.
In its latest bulletin to Telegram transmission subscribers connected April 10, trading steadfast QCP Capital cautioned implicit the latest crypto terms rebound.
QCP: Chinese “countermeasures” whitethorn permission crypto bulls stranded
Bitcoin and altcoins joined planetary banal markets successful rallying implicit the past 24 hours acknowledgment to a determination by US President Donald Trump to intermission galore of his caller commercialized tariffs.
China was a wide objection to the policy, however, with Trump doubling down connected tariffs portion alleviating unit connected different countries.
For QCP, present is the clip not for relief, but to brace for China’s adjacent move.
“With China singled retired truthful explicitly, marketplace participants are bracing for Beijing's counterpunch,” it explained.
“Should retaliation materialise successful force, the exuberant rally could rapidly morph into a classical bull trap.”
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Such a script would signifier a repetition of marketplace behaviour already seen this week. As Cointelegraph reported, an earlier rumor of a tariff pause, which failed to find authoritative confirmation sparked whipsaw banal moves ne'er seen before.
“The astonishment argumentation pivot temporarily soothed marketplace anxiety, driving short-end crypto vols lower. Still, we advocator caution,” QCP continued.
“Our table continues to observe topside selling successful May and June, suggesting that marketplace makers are utilizing the rally arsenic an accidental to offload unwanted positions.”Bitcoin to get “meaningful slice” of yuan outflows
Others noted imaginable tailwinds for Bitcoin successful the signifier of Chinese yuan devaluation arsenic a stopgap measurement successful the commercialized dispute. USD/CNY deed 18-year lows of 7.35 connected the day.
Related: Crypto stocks spot large gains alongside US banal marketplace rebound
No deal, PBOC continues a precise gradual yuan weakening. Shit ‘bout to get spicy. Luckily $BTC loves wealth printing and associated ccy weakness. pic.twitter.com/RcVkSj54O3
— Arthur Hayes (@CryptoHayes) April 10, 2025“China opening currency devaluation is much than conscionable an economical signal—it's a trigger,” Sina, co-founder of plus absorption steadfast 21st Capital, told X followers successful portion of a station connected the topic.
“Historically, erstwhile the yuan weakens, superior doesn’t enactment put. It escapes. Some of it flows into gold, immoderate into overseas assets—and a meaningful portion finds its mode into Bitcoin.”
USD/CNY 1-month chart. Source: Cointelegraph/TradingView
Sina suggested that the macroeconomic world would marque BTC vulnerability much charismatic going forward.
“Now furniture connected rising tariffs, slowing planetary trade, and a deepening situation of assurance successful accepted fiscal systems. The result? A increasing request for neutral, borderless, incorruptible assets,” helium concluded.
“Bitcoin isn’t conscionable a hedge anymore. It’s becoming a necessity successful a satellite looking for stableness extracurricular the power of immoderate 1 nation.”In consequent discussions, however, helium acknowledged that Bitcoin had improbable enactment successful a semipermanent terms bottom.
Previously, Cointelegraph reported connected assorted BTC terms targets for a sustained rebound, with galore of these focusing connected $70,000.
This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.
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