Matrixport: Bitcoin Set For Potential Rally As USDCNY Approaches Key Resistance
In Brief
Matrixport suggests Bitcoin may follow a 2015 pattern, with the USDCNY nearing resistance levels, potentially signaling an upward surge despite short-term obstacles from US Treasury yields.
Cryptocurrency service provider Matrixport published a cryptocurrency market analysis highlighting that after the devaluation of the Chinese RMB in 2015, Bitcoin initially faced a sell-off but ended the year with a strong performance. The firm suggests that a similar pattern might occur now, drawing comparisons to its previous bullish stance on gold made 18 months ago.
Matrixport notes that the USDCNY exchange rate appears to be approaching key technical resistance levels, mirroring their earlier prediction on gold. This could indicate that current prices are artificially suppressed and might soon experience a sharp upward surge. Furthermore, the firm observes an interesting correlation between the USDCNY rate and the 10-year US Treasury yield. While yields have recently declined, any sharp rebound could create short-term obstacles for Bitcoin’s upward trajectory.
Amid ongoing uncertainty in global monetary trends, market participants are closely observing China’s potential impact on Bitcoin. BitMEX co-founder Arthur Hayes also suggests that a devaluation of the Chinese yuan (CNY) could lead to capital outflows into Bitcoin, a trend previously seen in 2013 and 2015. With the USDCNH nearing five-year highs, speculation about a potential policy shift in China is increasing.
Arthur Hayes further links the devaluation of the yuan to a potential boost for Bitcoin, explaining that China’s independent monetary policy under President Xi Jinping could intentionally weaken the yuan to maintain economic competitiveness. According to him, this creates a favorable environment for Bitcoin, as Chinese capital looks for alternative investment options in response to the yuan’s decline.
Bitcoin Rebounds To $79,000 Level Amid Market Volatility
As of the current writing, Bitcoin is trading at $79,134, marking a 3.26% increase over the past 24 hours. The price has recovered from a low of $74,400 yesterday, due to the volatility triggered by the US administration’s announcement of new tariffs, which has affected global markets, including cryptocurrencies. Investors are now awaiting further developments in the trade negotiations, hoping for more stability moving forward.
Meanwhile, the global cryptocurrency market capitalization stands at $2.5 trillion, reflecting a 3.83% increase over the last 24 hours. The total cryptocurrency market volume for the past 24 hours is $161.01 billion, showing a 3.67% rise, according to data from CoinMarketCap.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
