Bitcoin Approaches Death Cross as Yuan Falls Amid Trump Tariffs
Asian markets are in a risk-off mood following U.S. President Trump's announcement of reciprocal tariffs on imports from 180 nations, including a new 34% tariff on China, raising the total to 54%. Canada and Mexico are exempt from these tariffs.
Key points:
- Market reaction hinges on China's response; potential devaluation of the Yuan could trigger global market downturns.
- China has urged the U.S. to lift tariffs while promising immediate retaliation.
- The Chinese yuan fell to a seven-week low at 7 RMB/USD, impacting Asian equities, with Japan's Nikkei hitting an eight-month low.
- Bitcoin traded around $83,300, dropping from $88,000 post-announcement, with a possible "death cross" pattern emerging as the 50-day SMA approaches the 200-day SMA.
- Options pricing indicates a bias towards downside protection through June end expiry.
Developments in China's currency strategy and trade relations will be critical for market movements, particularly affecting risk assets like stocks and cryptocurrencies.