Bitcoin Drops to $76,500 Following Relief Rally as Yuan Weakens
The crypto market faced a downturn on Tuesday following an announcement of punitive tariffs against China.
- Bitcoin briefly reached $80,000 but fell to $76,500, stabilizing below $78,000.
- In the last 24 hours, bitcoin decreased by 1.2%, while ether dropped nearly 4% to below $1,500.
- The CoinDesk 20 index declined by 2.2%.
- Crypto equities suffered losses; Bitdeer (BTDR) was down 8.7%, MicroStrategy (MSTR) fell 5.3%, and Coinbase (COIN) decreased by 2.3%.
- DeFi Technologies (DEFTF) rose by 10.27% amid speculation about a potential U.S. Nasdaq listing.
- The S&P 500 and Nasdaq recorded losses of 0.5% and 0.7% after earlier gains.
- The White House announced a 104% tariff on Chinese goods, resulting in the offshore yuan (CNH) depreciating to 7.4 against the U.S. dollar.
- Market analysts suggest that a devaluation of the yuan could lead to capital flight towards bitcoin.
- Kirill Kretov from CoinPanel noted ongoing uncertainty due to geopolitical tensions and warned of persistent market volatility.
