Chinese Marketing Company Aurora Mobile Plans to Adopt Crypto Treasury

Aurora Mobile (JG), a Nasdaq-listed marketing technology provider, is the latest publicly traded company to plan a treasury strategy that includes cryptocurrency investments.

The Shenzhen, China-based company's board approved an initiative to convert up to 20% its cash and cash equivalents into BTC and other digital assets. The investments may include bitcoin BTC, ether ETH, Solana's sol SOL and sui SUI among other tokens, it said Wednesday.

Aurora aims to “preserve and enhance asset value while supporting its strategy to expand market coverage,” it said in a statement.

In its latest quarterly earnings report, Aurora reported cash, cash equivalents and restricted cash totaling 113.6 million yuan ($15.8 million), suggesting it could invest some $3 million in bitcoin and other crypto.

The strategy emulates that of multiple other companies that have revealed plans to acquire bitcoin in recent weeks.

The company's shares jumped in pre-market trading following the announcement, trading nearly 10% higher at $12.10.

Read More: Deep Sea Mining Firm Goes Deep on Bitcoin With $1.2B BTC Treasury Plan

Stablecoin Connector BVNK Partners With Chinese Cross-Border Payments Firm LianLian

BVNK, a London-based firm that helps payment service providers (PSPs) use stablecoins, is working with Chinese payments company LianLian and its network of merchants in over 100 countries.

The BVNK integration automatically converts merchant stablecoin deposits to USD, which LianLian Global routes through its global network, the companies said on Wednesday.

Stablecoins are a fast-growing segment of the payments world, with various estimates about how large this market will become in the coming years, ranging from $1.6 trillion to $3.7 trillion by 2030.

BVNK, which raised $50 million of funding late last year, processes over $12 billion of stablecoin transactions annually and works with payments giants like Worldpay and Visa. LianLian, a large Asia PSP working with 130 currencies, said it was using Ripple’s cross-border payments technology back in 2022.

“Through this partnership, LianLian Global's merchants can transform idle digital assets into instant cross-border payment fuel,” said BVNK CEO Jesse Hemson-Struthers in a statement. “Together, we're removing technical barriers so businesses worldwide can access these high-speed payment rails and move their money faster than ever before.”

Bitcoin Slips Below $104K, Cryptos Slide as U.S.-China Tariff Tensions Flare Up

Markets went red on Friday on renewed tariff-related apprehensions.

Bitcoin BTC is down 2.1% in the last 24 hours, trading just above $104,000 after briefly hitting a session low of $103,900. The CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, except for stablecoins, memecoins and exchange coins — slumped even further, by 4.2%.

Smart contract platforms were particularly affected, with solana SOL, sui SUI and avalanche AVAX losing 6.3%, 7.8% and 7.3% respectively.

Crypto stocks also took a hit, especially bitcoin mining firm Bitdeer (BTDR), down 8.3% on the day after a run-up that saw the stock rise 132% from April 16 to May 21. Strategy (MSTR) slid 2.7%, and Coinbase (COIN) 1.3%.

The bleeding wasn’t contained to crypto. The S&P 500 and Nasdaq are down 1% and 1.5% respectively, while gold lost 0.7%.

U.S.-China tariff clash: Round 2?

Behind the price action was the flare-up of U.S. trade tensions once again after an agreement was struck earlier this month. The concerns came after President Donald Trump accused China in a post on Truth Social of “violating” the tariff truce between the countries.

Meanwhile, Treasury Secretary Scott Bessent said in a Fox News interview that talks had “stalled” with the Chinese representatives.

China, in response, urged the U.S. to “immediately correct its erroneous actions, cease discriminatory restrictions,” BBC reported.

The cool-off between U.S. and China helped risk assets rally in May, providing a tailwind for BTC to clinch a new record high. The re-escalation now threatens to unwind some of those gains.

Read more: Bitcoin Whales Seem to Be Calling a Top as BTC Price Consolidates

International Chauffeur Service Webus Plans $300M Raise for XRP Strategic Reserve

Webus International, a China-based provider of customizable car and touring services for travelers worldwide, said it plans to raise as much as $300 million through non-equity financing to establish an XRP XRP reserve supporting its global chauffeur payment network.

The reserve is part of a broader push to integrate XRP’s cross-border settlement capabilities into Webus’s ecosystem, including on-chain booking records and a Web3-based loyalty program, the company said.

The initiative aims to streamline international payments while preserving equity value by relying on loans, credit lines and shareholder guarantees rather than issuing new shares, CEO Nan Zheng said in the statement.

The announcement follows Saudi Arabia-based VivoPower International’s plans to build a $121 million XRP treasury, indicative of growing interest from companies in the fourth-largest token by market cap.

The financing plan is non-binding and subject to final agreements and due diligence.

Webus added it was renewing a partnership with Tongcheng Travel Holdings, one of China’s largest online travel agencies, to extend their “Wetour x Tongcheng” charter lines — stating they would aim to use the XRP Ledger to settle cross-border rides and driver payouts.

U.S. Trade Court Ruling Sends 30-Year Treasury Yield Above 5%

U.S. Treasury yields are climbing swiftly, with the 30-year yield rising back above 5% and the 10-year jumping to 4.50% after the U.S. Court of International Trade ruled President Donald Trump's key tariff measures illegal.

The court said Congress had exclusive authority to regulate trade with other countries, and the president exceeded his authority by invoking emergency economic powers not intended for imposing broad trade levies, according to news service reports. While Wednesday's ruling nullifies the general 10% and reciprocal duties, it does not affect sector-specific tariffs like those on steel or autos. The administration said it plans to appeal the ruling.

Over the past two sessions, the 10-year yield has rise from 4.40%, underscoring how sensitive the bond market remains to policy shifts and geopolitical developments.

Despite the ruling, macro uncertainty continues to loom large. As the Kobeissi Letter points out, tensions between the U.S. and China are far from easing. The U.S. has ordered domestic chip designers to halt sales to China, paused exports of critical chip software and jet-engine technologies, and announced plans to begin revoking visas of Chinese students in a signal of a renewed push toward decoupling.

The Dollar Index (DXY), a measure of the U.S. currency's value against a basket of trade partners, has responded in kind, climbing to 100 from 98 as investors flock to the dollar amid global uncertainty and rising yields. Meanwhile, both bitcoin BTC and gold remain in a holding pattern, suggesting markets are bracing for the next major policy move or geopolitical surprise.

Why The US-China 90-Day Tariff Slash Can Push Bitcoin Price Above $110,000

The Bitcoin price and the entire crypto and stock market have been operating at the mercy of the tariff wars ignited by US President Donald Trump after being sworn into office. The initial wave of tariff increases on countries such as China triggered massive crashes across financial markets, plunging the Bitcoin price below $80,000. However, the tariff wars are nearing their end with the latest announcement from the White House regarding trade between the United States and China.

White House Announces Reduction Of China Tariffs

In April 2025, US President Donald Trump had announced a drastic increase of tariffs on Chinese goods to a high 145%, with over 180 countries also seeing tariff increases. This triggered a wave of panic and retaliation, triggering what is now known as the ‘tariff wars.’ As discussions progressed, another announcement in April revealed a 90-day pause on tariffs for other countries, with the exception of China.

While China was yet to exempt, the 90-day pause did have a positive effect on the market as the Bitcoin price recovered, taking the crypto market up with it. Since then, the Bitcoin price has since recovered above $100,000, as well as the stock market seeing multiple green days.

Trade talks have since been ongoing between China and the United States and there has been a stopgap put in place for now. In a statement on the White House website, it was announced that both the Chinese and United States government at the US-China Economic and Trade Meeting in Geneva had agreed to modify their respective applications and implement a suspension of 24 percentage points of tariffs.

This agreement is expected to be in place for an initial period of 90 days, giving both parties time for more discussions toward a resolution. The statement read that this was done in “the spirit of mutual opening, continued communication, cooperation, and mutual respect.”

Why The Bitcoin Price Could Explode

Currently, the rally of the Bitcoin price is being driven by the positive news surrounding the tariffs. So, it is expected that more positive news will continue to drive up the price. The agreement between the US and China states that both countries should have implemented the tariff reduction by May 14, 2025. With only a day left, this deadline could trigger another rally.

As the news of the suspension begins to make the rounds, it signals no negative news coming out regarding tariffs for the next three months at least. This gives time and most importantly, confidence in risk assets such as Bitcoin for investors looking for gains. With the return of investors into the risk market, the Bitcoin price could quickly cross $110,000 as early as Wednesday.

Bitcoin price chart from TradingView.com

With Gold Stalling, Is It Bitcoin’s Turn? Traders Eye $95K as Key Breakout Level

The crypto market’s rally stalled on Wednesday after U.S. Secretary of Treasury Scott Bessent reiterated that a proper trade deal between Washington and Beijing would take years to ink out.

Bitcoin (BTC) is up 2.6% in the last 24 hours and 12.2% in the last seven days, trading at $93,600 for the first time since the beginning of March. The largest cryptocurrency was outperformed by large swaths of the market, with the CoinDesk 20 — an index of the top 20 coins, excluding stablecoins, memecoins and exchange tokens — rose 4.2% in the last 24 hours. Sui (SUI) jumped 24% in that period of time, while Cardano's ADA and Chainlink's LINK both saw 7% gains.

CoinDesk 20 Index performance (CoinDesk)

Crypto stocks, which opened strong, saw their performance dampen as the day unfolded. Miners such as Bitdeer (BTDR) and Core Scientific (CORZ) fell back from double-digit gains, closing the day up roughly 4%. Coinbase (COIN) and Strategy (MSTR) are up 2.1% and 1.4%, respectively.

U.S. President Donald Trump seemed to be dialing down the pressure on China in the last few days, saying that tariffs on the Middle Kingdom would “come down substantially” on Tuesday. Bessent, however, said on Wednesday that the White House had not made a unilateral offer to cut tariffs on China, and that a deal between the two nations would take two to three years to achieve.

“A meaningful thaw in relations may not materialize until substantive news emerges from the upcoming Xi-Trump meeting,” said Paul Howard, director at crypto trading firm Wincent. Markets priced in the initial tough stances and tariff threats, which kept a lid on risk appetite over the past two months, he said.

“History suggests that once the opening volleys pass, more constructive developments and easing volatility typically follow,” Howard said, which could support risk assets such as crypto.

BTC ETF flows return

In a sign of renewed investor demand, U.S.-listed spot BTC exchange-traded funds (ETFs) have recorded nearly $1.3 billion in net inflows this week so far, according to SoSoValue data. The funds booked their strongest day on Tuesday since mid-January.

“This [crypto] rally isn’t retail-driven hype—it’s institutional capital positioning ahead of what many see as a new monetary and political regime,” said Matt Mena, crypto research strategist at digital asset manager 21Shares. “More investors are turning to it not just as a speculative asset, but as a flight to safety amid rising uncertainty across traditional markets.”

Despite the strong price action, Mena added that BTC is facing resistance at around the $95,000 level in the short term and could pull back.

Bitcoin to catch up to gold

Gold, meanwhile, is down 2.5% today, trading at $3,290 per ounce after a run that saw the precious metal rise 35% to $3,500 in the span of four months, possibly hinting that the market could be moving past peak uncertainty.

Gold stalling after a massive rally could bode well for bitcoin, said Charles Edwards, founder of bitcoin-focused hedge fund Capriole Investments. Posting a chart on X on Wednesday, he noted that BTC historically followed gold's gains with a few-month lag.

Bitcoin tended to follow gold's rallies with a lag over the past years (Charles Edwards)

“Bitcoin is showing significant strength,” Edwards said in an X post. “We have decoupled from risk assets and the market is now starting to front-run the fact that bitcoin is digital gold. If risk assets were to decay further from here, BTC is the ultimate QE [quantitative easing] hedge.”

Read more: Bitcoin Breaches 'Ichimoku Cloud' to Flash Bullish Signal While Altcoins Lag: Technical Analysis

Gold Rush Or Bitcoin Boom? China Buys Big, BTC Price Follows

China has added five tonnes of gold to its reserves in under a month as part of an increasing aggressive purchase of the precious metal. Bitcoin continues to stand firm above the $87,000 level despite recent market fluctuations.

PBOC Gold Accumulation Up As Bitcoin Price Soars

According to the Kobeissi Letter in posting messages on X, the People’s Bank of China has been abruptly accumulating gold. It has acquired five tonnes over the last month. This has taken place amid uncertainty in global markets from the rift caused by persistent tensions in trade along US-China fronts.

Bitcoin traders seem to witness this, as the price of the crypto holds strong at $87,280, with scanty negative macronews in the background. Merely four days ago, cryptocurrencies fell back after US President Donald Trump proclaimed a 245% import tax on Chinese items. The quick recovery has surprised many market observers.

Whale Wallets Indicate Growing Appetite For Bitcoin

Statistics by Glassnode indicate a steep increase in addresses containing over 1,000 Bitcoin. More than 60 new “whale” wallets have entered the market since early March.

The number of such large Bitcoin addresses has increased from 2,030 in late February to 2,100 as of April 15, which is the highest in four months. The boost indicates large investors are purchasing more Bitcoin despite changing market conditions.

Others say the strength of Bitcoin lies in its increased popularity as an inflation hedge, akin to gold. This theory has become more widely accepted as China seems to be steering away from US dollar-denominated assets.

Gold Prices Hit New Records As Trade Tensions Mount

Prices of gold have surged to $3,401, up by close to $100 over only a week. The rise comes as institutions, dominated by China, raise their gold stockpiles.

The ongoing tariff war between the US and China has driven investors towards traditional safe-haven assets. Bitcoin is also seen to be gaining from this same trend, with some investors seeing it as a contemporary option for gold in times of uncertainty.


Mixed Signals From ETF Flows And Market Analysts

Not everything is rosy for Bitcoin. Reports disclose that nearly $5 billion has exited Bitcoin ETFs since their aggregate flow hit all-time highs. In spite of this outflow, Bitcoin’s price has remained extremely stable.

There are also contradictory reports regarding China’s position on Bitcoin. While there are rumors that China may be accumulating a Strategic Bitcoin Reserve, other reports say the nation sold 15,000 BTC on offshore exchanges.

The cryptocurrency’s ability to maintain its price despite these mixed signals has caught the attention of traders worldwide. As US-China economic tensions continue, investors are watching both gold and Bitcoin as potential safe havens in an increasingly unstable global market.

Featured image from GEPL Capital, chart from TradingView

Bitcoin Rally Stalls, but Sliding Yuan Could Be Bullish Catalyst

The crypto market’s relief rally fizzled out on Tuesday as stocks gave up big early gains and turned lower alongside the Trump administration’s plan to imminently enforce punitive tariffs against China.

After staging a brief rally to the $80,000 mark, bitcoin (BTC) had slumped back to $76,500 before stabilizing below $78,000. Recently, the top cryptocurrency was down 1.2% in the last 24 hours, while ether (ETH) lost nearly 4% over the same period and fell below $1,500. The CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, except for stablecoins, memecoins and exchange coins — was down 2.2%.

Crypto equities have also taken a hit, with bitcoin miner Bitdeer (BTDR) leading the way with a 8.7% loss. Strategy (MSTR) is down 5.3% and Coinbase (COIN) 2.3%. One outlier is DeFi Technologies (DEFTF), which is up 10.27%, potentially due to an expectation from some of its shareholders that the Toronto-based company could soon follow in Galaxy Digital’s (GLXY) footsteps and get listed on the U.S. Nasdaq.

Meanwhile, the S&P 500 and Nasdaq are down 0.5% and 0.7%, respectively — modest losses, but sharply reversed from roughly 4% advances earlier in the session.

The price action happened as the White House announced during the day that 104% additional tariffs on Chinese goods would take effect at midnight on Tuesday. The tariff news put additional pressure on the Chinese currency, with the offshore yuan (CNH) rapidly depreciating against the U.S. dollar during the day to 7.4, its weakest levels in years.

Some have suggested that Beijing could respond to the tariffs by allowing a sizable weakening in the yuan, thus making China’s exports more competitive than otherwise. Bitcoin bulls have seized on that idea, noting a devaluation in the yuan would surely lead to capital flight from China, with at least some of that money potentially looking to hide out in bitcoin.

“If not the Fed then the PBOC will give us the yahtzee ingredients,” wrote Arthur Hayes. “It worked in 2013 , 2015, and can work in 2025,” he continued. “Ignore China at your own peril.”

Read more: Bitcoin Analysts Optimistic as China Surprisingly Fixes Yuan Beyond 7.2 Level

“We are currently in a phase of heightened uncertainty, with persistent trade disputes, geopolitical friction, active conflicts and growing fears of a global slowdown,” Kirill Kretov of cryptocurrency trading automation platform CoinPanel told CoinDesk in a Telegram note.

The choppy market conditions will likely remain, Kretov noted, with shallow liquidity on crypto and traditional markets exacerbating volatility. “Until more participants adjust to and capitalize on this environment, we’re unlikely to see a strong directional trend,” he added.

The All-Important U.S. 10-Year Yield Is Moving in the Wrong Direction for Trump

Monday’s trading session will go down as one of the most volatile since the COVID crash in March 2020, with global markets caught in the crossfire as the U.S. and China face off over tariffs and neither superpower shows any impulse to back down.

As equity markets teetered, the volatility spilled into every asset class. Bitcoin (BTC), for example, swung as much as 10% intraday. The real focus, however, is on the U.S. 10-year Treasury yield. That’s the so-called risk-free interest rate, which the Trump administration said it wants to lower as it looks to refinance trillions in national debt.

The yield dropped to 3.9% from 4.8% late last week after President Donald Trump bolstered trade tensions with sweeping import tariffs, boosting demand for the Treasury notes.

Bond prices typically rise, sending yields lower, when Wall Street turns risk averse. Unusually, as the risk-aversion increased on Monday, yields turned higher, jumping to 4.22%.

This spike wasn’t confined to the U.S. The U.K. experienced its sharpest rate jump since the Liz Truss-era pension crisis in October 2022, and yields rose globally, signaling growing instability and diminishing confidence in sovereign debt and currencies.

Ole S Hansen, the head of commodity strategy at Saxobank, pointed to the scale of the move in long-dated Treasuries as a sign of something deeper potentially unfolding.

“U.S. Treasuries suffered a massive sell-off yesterday, with long yields rising the most since the turbulence during the pandemic outbreak—a possible sign of large holders of Treasuries, such as foreign holders, selling and repatriating their assets,” Hansen said in a post on X. “The 30-year U.S. Treasury benchmark rose from lows near 4.30% to as high as 4.65% yesterday, while the 10-year benchmark lifted back to 4.17% from a low near 3.85% the prior day.”

While Hansen pointed fingers at foreign selling, especially China, which is said to have offloaded $50 billion in Treasuries, Jim Bianco, president of Bianco Research, challenged that narrative.

“No, foreigners were not selling Treasuries to punish the U.S. (Trump),” he wrote, pointing instead to a sharp rally in the Dollar Index (DXY), which climbed 2.2% in just three days.

“If China or other foreigners were selling Treasuries … they would have to convert those dollars to a foreign currency. Otherwise, selling Treasuries and leaving the money in dollars in a U.S. bank is pointless. If they sold enough Treasuries to swing yields … the subsequent selling of dollars … would have driven down the dollar. Instead, it rallied more than usual.

“This suggests that foreign money was moving into the U.S., not away from it … the selling was more domestic and more concerned about inflation.”

Despite these views, unconfirmed reports about China’s sales continue to circulate. As of January 2025, China still held approximately $761 billion in U.S. government debt, the largest owner after Japan.

The narrative that the 10-year and 30-year yields surged on Chinese is unconvincing because most of the official Chinese investments in dollar-denominated assets are not in longer duration instruments, but agency bonds, shorter-term bills and bank deposits.

There is a perception China can gain leverage in the trade war through its holdings of U.S. Treasury notes. That’s not necessarily true.

As the economist and author of “The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy” Michael Pettis has long argued, China’s holdings of U.S. Treasury bonds are directly linked to its current account surplus and it cannot weaponize these holdings against the U.S.

It’s no surprise that China has been lightening up its Treasury investments since 2013 with its current account surplus peaking during the 2008 crash.

Bitcoin Analysts Optimistic as China Surprisingly Fixes Yuan Beyond 7.2 Level

China eased its grip on the yuan (CNY) on Tuesday, allowing it to depreciate beyond a key level, likely in response to President Donald Trump’s aggressive tariffs.

Crypto analysts anticipate that the yuan’s depreciation could favor bitcoin (BTC), drawing parallels to similar events from a decade ago.

Early Tuesday, the People’s Bank of China (PBOC) set the so-called daily yuan fix at 7.2038 per dollar on Tuesday, the weakest since September. The yuan isn’t a free float currency like the USD, euro and other G-7 nations and is allowed to trade in a range of 2% on either side of the daily fix announced at 9:15 a.m. Beijing time.

The 7.2 level has been considered a “harder line in the sand” for the central bank for years. The USD/CNY pair has traded above the said level a few times since 2022 but never established a foothold.

That could change with the PBOC explicitly setting the daily mid-point beyond the 7.2 level. In other words, the move signals a shift to managed depreciation of the yuan, which will help keep China’s exports cheaper and competitive, potentially offsetting the negative impact of Trump’s tariffs on Chinese goods.

Capital flight into BTC?

The managed depreciation could also trigger capital flight from China, which may find home in cryptocurrencies, according to analysts.

“The U.S. is now pursuing full-scale economic pressure on China, which may be forced to respond with quantitative easing and a currency devaluation. If so—and if China permits capital flight—Bitcoin could surge, much like it did in 2015,” Markus Thielen, founder of 10x Research, said in a note to clients Monday.

The Chinese central bank devalued the yuan by 1.9% on Aug. 11, 2015, the most significant single-day depreciation in over two decades, sending shockwaves across global financial markets. Bitcoin initially fell over 20% with the U.S. stocks but quickly turned higher and surged nearly 60% in the following four months.

Ben Zhou, CEO and founder of the crypto exchange Bybit, voiced a similar opinion on X, saying yuan depreciation tends to bode well for bitcoin.

“China will try to lower RMB to counter the tariff, historically, whenever RMB drops, a lot of Chinese capital flow into BTC, bullish for BTC,” Zhou said on X.

Regulatory hurdles

While history tells us to expect a bullish BTC reaction to yuan depreciation, note that over the years, China has become anti-crypto, citing financial stability risks and has some of the world’s harshest regulations.

A new regulation announced earlier this year requires banks to monitor and report suspicious international transactions, including those involving cryptocurrency. Banks are obligated to investigate and report any risky crypto trades, which may result in financial restrictions and potential blacklisting for the trader.

The stringent stance means local traders may have a tough time diversifying into bitcoin and other digital assets in the event of a sustained yuan depreciation.

“Since August 2024, the Supreme People’s Court has significantly increased the legal risks for individuals using cryptocurrencies in connection with money laundering, which could easily extend to cases of capital flight,” Thielen said. “This presents a major deterrent, despite rising economic uncertainty.”

China Reportedly Discussing Front Loading Stimulus to Counter Trump Tariffs

Beijing is said to be discussing front-loading monetary stimulus to counter the destabilizing impact President Donald Trump’s tariffs on the Chinese economy, according to data source Trade The News.

The reports come a day after Trump said he won’t make a trade deal with China unless the trade deficit is solved. Financial markets have crashed with bitcoin falling under $80K since Trump announced gigantic reciprocal tariffs Thursday, boosting trade tensions.

Goldman Sachs now expects a total of 130 basis points in Fed rate cuts for 2025, up from 105 basis points late last week. The Reserve Bank of Australia is expected to deliver four rate cuts.

Bitcoin Falls Back to $83K as China Announces 34% Tariffs on All U.S. Goods

Risk sentiment worsened during the European hours Friday after China announced retaliatory tariffs on all goods, responding to Trump’s Wednesday decision to boost the overall levy on Chinese goods to 54%.

Bitcoin, the leading cryptocurrency by market value, fell by $1,600 to $83,000, erasing the early rise to $84,600, CoinDesk data shows. Other tokens like XRP, ETH, SOL and DOGE also reversed early gains to trade largely flat on the day.

Meanwhile, futures tied to the S&P 500 and Nasdaq fell over 2% amid escalating global trade tensions.

“China’s response is not only negative for the U.S. but it is also impacting the global outlook,” ForexLive’s analyst Justin Low wrote in a market update.

China on Watch After U.S. Government Embrace of Bitcoin: Grayscale

The Trump administration’s formation of a U.S. Strategic Bitcoin Reserve might have China re-thinking its hardline stance against crypto and that could be key for accelerated global adoption of BTC, asset manager Grayscale said in a research report Monday.

“The most important country to watch in this regard is China,” said Grayscale, adding that if the country eases its crypto restrictions “it could significantly boost global adoption.”

President Trump last month directed his administration to form a Strategic Bitcoin Reserve to — at a minimum — hold the assets that have been seized by the government.

Grayscale noted that current Chinese government policy bans most crypto activities, such as trading and mining, but permits the holding of digital assets.

Still, “policymakers have allowed an expansion of crypto-related activity in Hong Kong under the ‘one country, two systems’ framework,” Grayscale said.

Local regulators may be taking another look at the legal treatment of cryptocurrencies in the country. China’s Supreme Court and other judicial bodies had a discussion in February about how to treat digital assets in future legal cases, the report noted.

Read more: U.S. Strategic Bitcoin Reserve, Crypto Stockpile a ‘Pivotal Moment’ for Industry: KBW

How North Korea Launders Billions in Stolen Crypto

How does North Korea launder its crypto loot?

Each time the Hermit Kingdom successfully hacks a company or protocol — like when it pillaged $1.5 billion from crypto exchange Bybit on Feb. 21 — it faces the significant challenge of offramping its assets.

It cannot simply send the funds to a major exchange like Binance or Coinbase, because such firms implement Know-Your-Customer (KYC) checks and work in conjunction with law enforcement agencies to freeze illegally-obtained funds as soon as they’re deposited on their platforms.

Instead, North Korea uses a well-developed network of over-the-counter (OTC) brokers to launder the stolen funds, according to Ari Redbord, global head of policy at blockchain analytics firm TRM Labs.

“They’ll look to exchanges globally that don’t have compliance controls in place,” Redbord, a former senior advisor to the Deputy Secretary and the Undersecretary for Terrorism and Financial Intelligence at the U.S. Treasury, told CoinDesk in an interview. “Everyone uses Chinese money laundering organizations. The cartels use them to move funds. There’s a network there that North Koreans have used for years.”

“But it’s not just China. Look around the world at places where you have no regulation or a lack of money laundering controls. Russia has been like a money laundering state for a very long time. There’s tons of dark net market activity and ransomware actors that are related to Russia. North Korea has also used casinos in Macau to launder fiat.”

Off-ramping billions

To the best of our knowledge, North Korea has never used crypto to pay for things on the international scene. Instead, it tries to convert the tokens into government-issued currencies like the Chinese renminbi or the U.S. dollar, Redbord said.

But off-ramping billions in value isn’t easy. North Korea has stolen more than $5 billion since 2017, according to TRM. Broken down on a per-month basis, that means that North Korea has needed to offramp at least $51 million per month on average — which is way too much for its money laundering network’s capabilities.

“You’re inevitably seeing these funds sit in wallets over long periods of time. I don’t think that’s them setting up a strategic reserve of some kind; they’re just not being able to off-ramp the funds,” Redbord said. “In every world, North Korea wants to get those funds off-chain as fast as they can.”

“It’s so much money. Think about Pablo Escobar — he had this huge problem with storing cash. He didn’t know where to put it all,” Redbord added. “That’s what North Korea has with crypto right now.”

In the Bybit hack’s case, the vast majority of the stolen ETH has already been bridged to Bitcoin via THORswap, a protocol that enables permissionless swaps between the Ethereum and Bitcoin networks.

The haul is now being fed through mixers (protocols that allow users to obfuscate their transactions on the blockchain) like Wasabi and CryptoMixer. These platforms typically process no more than $10 million a day, meaning that North Korea faces potential bottlenecks even before trying to offramp its stolen funds through OTC brokers. “Whether these mixers can continue to absorb the amount of money at play is an open question,” TRM said in a recent report.

What happens afterwards?

Once funds are offramped through OTC brokers, the trail goes cold for blockchain analysis firms like TRM, but not necessarily for governmental agencies like the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI) or IRS Criminal Investigation (IRS-CI), which each have a broad panoply of intelligence-gathering tools at their disposal.

Such agencies may use human intelligence (interviews, interrogations and espionage) and signals intelligence (intercepting communications or gathering information from electronic devices) to boost their investigations.

These agencies are sometimes able to retrieve stolen funds. In the case of the Colonial Pipeline ransomware attack in 2021, the Department of Justice (DOJ) was eventually able to recover almost 85% of the bitcoin (BTC) ransom paid to Russian cybercriminal group Darkside. It’s unclear how investigators obtained the hacking group’s private keys.

The network of Chinese shell companies that North Korea uses to launder funds — whether from crypto or other sources — is constantly being monitored by U.S. agencies in collaboration with Japanese and South Korean authorities, Redbord said. And getting funds laundered through the Chinese banking system doesn’t necessarily mean the game is won for North Korea.

Back in 2019, U.S. federal prosecutors served subpoenas to three Chinese banks in a North Korea money-laundering case. That would ordinarily be impossible because the U.S. government doesn’t have jurisdiction over the Chinese banking system, Redbord, who worked on the case, explained.

But a provision under the USA PATRIOT Act enables the practice under specific circumstances. If the foreign bank does not respond, the U.S. government is allowed to cut off the bank’s correspondent banking — essentially disconnecting the foreign bank from the U.S. banking system.

In that particular case, the Chinese banks eventually complied with the subpoena, Redbord said. But the strategy is hard to replicate because it requires serious political capital. “We’re talking about some of the biggest banks in the world. If you were to actually cut off correspondent banking from one of the major Chinese banks, it would not be good for the economy,” Redbord said. That’s why the Treasury Secretary and Attorney General need to sign off on this kind of strategy.

“If any administration would be willing to lean in a little bit, it would probably be this one,” Redbord said. “Issuing a subpoena to a small or mid-sized Chinese bank is probably something that would be worth doing. It does send a really strong message.”

How North Korea Launders Billions in Stolen Crypto

How does North Korea launder its crypto loot?

Each time the Hermit Kingdom successfully hacks a company or protocol — like when it pillaged $1.5 billion from crypto exchange Bybit on Feb. 21 — it faces the significant challenge of offramping its assets.

It cannot simply send the funds to a major exchange like Binance or Coinbase, because such firms implement Know-Your-Customer (KYC) checks and work in conjunction with law enforcement agencies to freeze illegally-obtained funds as soon as they’re deposited on their platforms.

Instead, North Korea uses a well-developed network of over-the-counter (OTC) brokers to launder the stolen funds, according to Ari Redbord, global head of policy at blockchain analytics firm TRM Labs.

“They’ll look to exchanges globally that don’t have compliance controls in place,” Redbord, a former senior advisor to the Deputy Secretary and the Undersecretary for Terrorism and Financial Intelligence at the U.S. Treasury, told CoinDesk in an interview. “Everyone uses Chinese money laundering organizations. The cartels use them to move funds. There’s a network there that North Koreans have used for years.”

“But it’s not just China. Look around the world at places where you have no regulation or a lack of money laundering controls. Russia has been like a money laundering state for a very long time. There’s tons of dark net market activity and ransomware actors that are related to Russia. North Korea has also used casinos in Macau to launder fiat.”

Off-ramping billions

To the best of our knowledge, North Korea has never used crypto to pay for things on the international scene. Instead, it tries to convert the tokens into government-issued currencies like the Chinese renminbi or the U.S. dollar, Redbord said.

But off-ramping billions in value isn’t easy. North Korea has stolen more than $5 billion since 2017, according to TRM. Broken down on a per-month basis, that means that North Korea has needed to offramp at least $51 million per month on average — which is way too much for its money laundering network’s capabilities.

“You’re inevitably seeing these funds sit in wallets over long periods of time. I don’t think that’s them setting up a strategic reserve of some kind; they’re just not being able to off-ramp the funds,” Redbord said. “In every world, North Korea wants to get those funds off-chain as fast as they can.”

“It’s so much money. Think about Pablo Escobar — he had this huge problem with storing cash. He didn’t know where to put it all,” Redbord added. “That’s what North Korea has with crypto right now.”

In the Bybit hack’s case, the vast majority of the stolen ETH has already been bridged to Bitcoin via THORswap, a protocol that enables permissionless swaps between the Ethereum and Bitcoin networks.

The haul is now being fed through mixers (protocols that allow users to obfuscate their transactions on the blockchain) like Wasabi and CryptoMixer. These platforms typically process no more than $10 million a day, meaning that North Korea faces potential bottlenecks even before trying to offramp its stolen funds through OTC brokers. “Whether these mixers can continue to absorb the amount of money at play is an open question,” TRM said in a recent report.

What happens afterwards?

Once funds are offramped through OTC brokers, the trail goes cold for blockchain analysis firms like TRM, but not necessarily for governmental agencies like the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI) or IRS Criminal Investigation (IRS-CI), which each have a broad panoply of intelligence-gathering tools at their disposal.

Such agencies may use human intelligence (interviews, interrogations and espionage) and signals intelligence (intercepting communications or gathering information from electronic devices) to boost their investigations.

These agencies are sometimes able to retrieve stolen funds. In the case of the Colonial Pipeline ransomware attack in 2021, the Department of Justice (DOJ) was eventually able to recover almost 85% of the bitcoin (BTC) ransom paid to Russian cybercriminal group Darkside. It’s unclear how investigators obtained the hacking group’s private keys.

The network of Chinese shell companies that North Korea uses to launder funds — whether from crypto or other sources — is constantly being monitored by U.S. agencies in collaboration with Japanese and South Korean authorities, Redbord said. And getting funds laundered through the Chinese banking system doesn’t necessarily mean the game is won for North Korea.

Back in 2019, U.S. federal prosecutors served subpoenas to three Chinese banks in a North Korea money-laundering case. That would ordinarily be impossible because the U.S. government doesn’t have jurisdiction over the Chinese banking system, Redbord, who worked on the case, explained.

But a provision under the USA PATRIOT Act enables the practice under specific circumstances. If the foreign bank does not respond, the U.S. government is allowed to cut off the bank’s correspondent banking — essentially disconnecting the foreign bank from the U.S. banking system.

In that particular case, the Chinese banks eventually complied with the subpoena, Redbord said. But the strategy is hard to replicate because it requires serious political capital. “We’re talking about some of the biggest banks in the world. If you were to actually cut off correspondent banking from one of the major Chinese banks, it would not be good for the economy,” Redbord said. That’s why the Treasury Secretary and Attorney General need to sign off on this kind of strategy.

“If any administration would be willing to lean in a little bit, it would probably be this one,” Redbord said. “Issuing a subpoena to a small or mid-sized Chinese bank is probably something that would be worth doing. It does send a really strong message.”

China, Germany Fire Fiscal Rockets as U.S. Looks to Cut Spending. What Does it Mean for Bitcoin?

Just as anabolic steroids are to bodybuilders, fiscal and monetary stimuli have been the lifeline for markets and the economy. Over the decades, nation-states have relied heavily on these fiscal injections to buff up markets and respective economies.

Now, to the delight of BTC and risk asset bulls, China, the world’s second-largest economy, and European Union’s heavyweight Germany have announced fresh fiscal bazookas. That might help calm crypto and traditional market nerves about the negative impact of the Trump administration’s plan to reduce spending and the President’s tariffs policies.

The National People’s Congress opened in Beijing today, targeting 5% GDP growth for 2025 while raising the fiscal deficit target to 4% of GDP, a full 100 basis points higher than the previous year’s 2% target.

“An increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” Premier Li Qiang said in his speech.

Notably, the plan showed that boosting domestic demand and consumption has become a top priority, in line with Beijing’s long-term plan to be a more consumer-driven growth model than an investment-driven one.

The decision to maintain the 5% target indicates that “policymakers continue to have confidence in stabilising growth despite stronger external headwinds,” ING said.

Meanwhile, early this week, Germany said it would unlock hundreds of billions of euros for defence and infrastructure investments, abandoning its famed fiscal rectitude.

“The massive shift in fiscal policy likely gives the struggling German economy a shot in the arm. A jump in defence spending might provide a cyclical boost, the proposed infrastructure package could deliver notable potential output gains in the long run,” Bloomberg economists said.

Asian and European equity markets rallied early today, cheering the fiscal bazooka from China and Germany. Bitcoin, too, has risen nearly 3% to $90,000, having defended the 200-day average Tuesday.

Aside from potentially compensating for any fiscal tightening in the U.S., China and Germany’s fiscal plan could also work its magic through the FX channel by putting the dollar under pressure.

When a country increases its borrowing, it typically signifies that bond supply will rise, placing downward pressure on bond prices and driving yields higher. This, in turn, enhances the appeal of the domestic currency.

That’s already happening. Germany’s 10-year bond yield has jumped 36 basis points to 2.73% since Feb. 25, reaching the highest since November 2023, according to charting platform TradingView. As such, the spread between yields on the 10-year U.S.-German government bond yields has tanked to 1.49% in the USD-negative manner, hitting the lowest since September and down significantly from the high of 2.31% in December.

The narrowing of the yield spread has lifted the EUR/USD, the most liquid FX pair, spurring a broad-based USD selling and pushing the dollar index below 105.00 for the first time since November.

Weakness in the greenback, a global reserve, tends to ease financial conditions worldwide, spurring increased risk-taking in financial markets.

HashKey Group Gets $30M Investment From Chinese VC Gaorong Ventures: Report

Gaorong Ventures, a prominent Chinese venture capital firm known for its early backing of internet giants in the country, has invested $30 million into the operator of Hong Kong’s largest licensed crypto exchange, HashKey Group, according to a Bloomberg report.

The backing came at a pre-money valuation of over $1 billion, according to the report. A HashKey spokesperson reportedly said that the post-money valuation was close to $1.5 billion.

China has banned cryptocurrencies a number of times. Its latest crackdown came in 2021 saw various crypto platforms leave the country, yet Chinese investors are upping their bets on the cryptocurrency space. Tencent Holdings, for example, has recently invested in crypto market maker Wintermute, the outlet reports.

Early last year, HashKey Group raised a $100 million Series A at a $1.2 billion post-money valuation.

The Hong Kong-based HashKey, established in 2018, operates the region’s first two licensed cryptocurrency exchanges and engages in venture funding and asset management.

Why DeFi Will Benefit From Trade Wars

Bitcoin (BTC) tumbled over the weekend, sinking well below the $100K mark as markets reacted to the latest escalation in the U.S. trade disputes. The broader digital asset market followed suit, leading to one of the most significant sell-offs since the outbreak of Covid and the collapse of FTX. Specifically, President Donald Trump announced sweeping new tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods.

Canada and Mexico initially retaliated but have since reached deals to delay the imposition of U.S. tariffs, while China has announced its own tariffs against U.S. goods. The developments have increased global economic uncertainty and sent risk assets into a temporary free fall.

As global economies wrestle with trade disputes, crypto markets face ripple effects in the form of price volatility, mining disruptions and regulatory challenges. But could these tensions also fuel the rise of decentralized finance? Let’s explore how tariff wars could shape the future of crypto.

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BTC’s reaction to tariff announcement

Market volatility: a double-edged sword

Tariff wars create uncertainty in traditional markets, often driving investors toward alternative assets like bitcoin, ether and other cryptocurrencies. During economic turbulence, crypto is sometimes seen as a “safe haven” similar to gold. However, even as institutional adoption of crypto grows, digital assets remain highly speculative. In the short term, the crypto market will be negatively impacted by increased volatility in global trade, with sudden surges or dips influenced by shifting trade policies — but over time, crypto will be less impacted than traditional finance.

Mining disruptions

Crypto mining relies heavily on specialized hardware, much of which is produced in countries like China. Tariffs on electronic components, semiconductors and mining rigs can drive up production costs and reduce profitability. Additionally, increased expenses could push smaller miners out of the market, potentially leading to greater centralization of mining power among major players with the resources to weather these financial storms.

Regulatory uncertainty and compliance hurdles

Tariff wars don’t just impact physical goods; they can also influence financial regulations. Governments engaged in tariff wars may use financial regulations as an additional tool to assert control. Increased scrutiny of international crypto transactions, exchanges and cross-border payments could lead to stricter compliance requirements. This, in turn, could slow adoption rates and make crypto less accessible, particularly in regions where trade restrictions are tightening. At the same time, heightened regulations may push some users deeper into decentralized finance (DeFi) platforms, which operate outside traditional banking systems.

Shift towards decentralized finance (DeFi)

As trade conflicts heighten distrust in traditional financial systems, decentralized finance (DeFi) may offer users a way to bypass some of the barriers imposed by tariffs and regulations. More users may turn to DeFi platforms for financial autonomy. DeFi applications allow for peer-to-peer transactions without intermediaries, reducing reliance on traditional banking, which is often impacted by trade policies. If tariff wars continue to disrupt traditional trade channels, crypto-based financial solutions could see increased adoption.

Conclusion

While crypto is often seen as a hedge against economic instability, it is not immune to the effects of tariff wars. From increased volatility and mining costs, to regulatory shifts and the potential rise of DeFi, the trade conflicts of today could shape the digital economy of tomorrow. While crypto may face new hurdles in the short term, it will emerge stronger in the long term as global markets seek an alternative to traditional finance amidst global governments’ ongoing economic battles. Investors, miners and policymakers should keep a close eye on trade developments as they navigate the complex relationship between geopolitics and digital assets.

Bitcoin Struggles To Hold $100,000 As China Strikes Back With US Import Tariffs – More Downside For BTC?

Bitcoin (BTC) enjoyed a brief sigh of relief yesterday as the US delayed its proposed 25% trade tariffs on Mexico and Canada by a month. However, the US proceeded with its 10% tariffs on China, prompting retaliatory measures from Beijing. The escalation has pushed BTC back below the critical $100,000 price level.

Bitcoin Suffers Amid Trade Wars

After a volatile 24 hours filled with uncertainty surrounding US trade tariffs on Mexico and Canada, BTC experienced a short-lived relief rally to $102,000. This came after US President Donald Trump announced a 30-day delay in imposing tariffs on the two North American nations.

However, today’s implementation of US tariffs on China triggered a sharp downturn, causing BTC to break below the $100,000 level. In response, China’s Ministry of Finance announced new countermeasures. 

Starting February 10, China will impose an additional 15% tariff on coal and liquefied natural gas, along with a 10% tariff on agricultural equipment, crude oil, and certain vehicles.

Additionally, Beijing has accused the US of violating World Trade Organization (WTO) regulations with its one-sided tariff policies. The Chinese Ministry of Commerce also stated that it would tighten export controls on key raw materials, including molybdenum, indium, bismuth, tellurium, and tungsten, citing national security concerns.

With trade tensions escalating between the US and China, analysts predict heightened volatility in the crypto market in the coming days. Well-known crypto strategist Michael van de Poppe shared his outlook:

Bitcoin bounced back swiftly and is currently acting within the range. I assume we’ll see new ATHs in February and it’s quite normal to correct after such a strong bounce. Volatility through the roof, but, as long as Bitcoin remains above $93K, a new ATH is likely.

Meanwhile, crypto trader and investor Phoenix suggested that BTC could establish a new trading range amid the ongoing trade war. However, history suggests that heightened tariffs could spell trouble for cryptocurrencies.

Web3 enthusiast merts.eth pointed out in an X post that BTC plummeted 65% in 2018 when Trump first initiated a trade war with China. The effects were not limited to digital assets, as the S&P 500 also dropped 12% in the weeks following the implementation of tariffs.

merts

More Downside For BTC?

As Bitcoin struggles to hold the $100,000 price level, concerns are mounting about another potential breakdown in price. Crypto analyst Ali Martinez recently pointed out that if BTC fails to hold the $97,190 support level, there could be more pain for the top digital asset. 

The analyst made another observation about how BTC is currently trading in a bearish flag pattern. At press time, BTC trades at $99,961, up 1% in the past 24 hours.

bitcoin