CoinMarketCap<\/a><\/p>\nDespite a broader rise across global stock and crypto markets, analysts are now warning that Bitcoin could be walking into a classic bull trap as the US-China trade war takes another turn.<\/p>\n
Market participants, buoyed by news of tariff pauses for several nations, are bracing for a potential counterstrike from Beijing after President Trump kept restrictions in place for China.<\/p>\n
If retaliation materialises, Bitcoin\u2019s upward trend could reverse sharply, fuelled by macro uncertainty.<\/p>\n
QCP flags May-June correction<\/h2>\n
Bitcoin and altcoins rallied alongside equities following a decision by President Trump to roll back some tariffs, but with China excluded from the relief, markets are anticipating aggressive countermeasures from Beijing.<\/p>\n
QCP noted that the short-term rally has led to a decrease in crypto volatility, especially on the short end.<\/p>\n
However, the firm\u2019s internal trading desk continues to see \u201ctopside selling in May and June,\u201d suggesting that many market makers are using the current rally as an exit strategy rather than a long-term vote of confidence.<\/p>\n
This view is supported by historical market reactions.<\/p>\n
Earlier in the week, a rumour of a broader tariff pause had already created sharp whipsaw movements in stocks and crypto, as the lack of official confirmation caused investor sentiment to shift rapidly.<\/p>\n
QCP pointed out that \u201cexuberant rallies\u201d under such uncertain conditions can easily transform into bull traps\u2014situations where prices rise quickly, only to drop sharply, trapping investors in losing positions.<\/p>\n
Yuan slide fuels BTC demand<\/h2>\n
While warnings of a bull trap loom, others see a different side of the coin.<\/p>\n
The Chinese yuan (CNY) has fallen to an 18-year low against the US dollar, with the USD\/CNY pair reaching 7.35.<\/p>\n
This devaluation could become a catalyst for further capital flight from China, according to some market watchers.<\/p>\n
Sina, co-founder of 21st Capital, pointed out on X (formerly Twitter) that \u201cwhen the yuan weakens, capital doesn\u2019t stay put.\u201d Historically, such moves have led to an outflow of funds into gold, foreign assets, and increasingly, into Bitcoin.<\/p>\n
For Chinese investors looking to shield their capital from both currency devaluation and trade policy unpredictability, BTC offers a decentralised alternative.<\/p>\n
This dynamic positions Bitcoin not just as a hedge, but as an escape valve in a time of mounting financial pressure.<\/p>\n
The idea that BTC is becoming a \u201cnecessity\u201d in unstable environments is gaining traction, especially in markets facing tight capital controls and weakening fiat currencies.<\/p>\n
BTC stability still uncertain<\/h2>\n
While capital outflows from China may boost short-term demand for BTC, analysts are not yet convinced that Bitcoin has hit a long-term bottom.<\/p>\n
Price targets for a meaningful and sustained rebound continue to focus on the $70,000 range, which many technical indicators have flagged as a critical support and resistance level.<\/p>\n
The $81,552 price point represents a notable high, but there\u2019s increasing scepticism about whether the current momentum can be sustained without more favourable macroeconomic signals.<\/p>\n
Trade dynamics, currency moves, and interest rate policy will all continue to play a role in Bitcoin\u2019s trajectory in the coming weeks.<\/p>\n
With global macroeconomic uncertainty colliding with rising investor interest in alternative stores of value, Bitcoin is navigating a highly volatile phase.<\/p>\n
While the digital asset may benefit from yuan-driven outflows and tariff fears, any escalation in trade tensions, particularly if China responds aggressively\u2014could turn current gains into short-lived spikes.<\/p>\n
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Diya Poddar Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"QCP Capital warns of a bull trap if China retaliates. Market makers are said to be selling into the rally ahead of May and June. USD\/CNY hits 7.35, triggering capital outflows from China. Bitcoin (BTC) surged past $82,000 earlier this week, but the rally\u2019s stability remains in question. At the time of writing, BTC is<\/p>\n","protected":false},"author":1,"featured_media":848121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,1743],"tags":[11476],"class_list":["post-848120","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin","category-faces","tag-bitcoins"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/848120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=848120"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/848120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/848121"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=848120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=848120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=848120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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