China's Response to Trump's Tariffs Affects Bitcoin

China has aimed to diversify its exports outside of America in response to the United States' customs tariffs. This situation is helping China to maintain its export engine and increase its global market share.

JPMorgan reported that Beijing prioritizes keeping the yuan stable and within a certain range through its low volatility currency management system. With this method, China is fighting deflation while preserving its competitiveness. At the same time, movements of the yuan are becoming tightly linked to the dollar.

The managed currency regime is indirectly affecting Bitcoin. This effect occurs through global dollar liquidity and tariff-based macro cycles.