Yuan Slumps as China Battles Capital Outflows, Potential Headwind for Bitcoin
• China facing currency depreciation and economic threats leading to capital outflows • Chinese yuan has declined 1.39% against US dollar, offshore yuan down 1.25% • China selling US dollars onshore to prop up yuan, tightening offshore liquidity • Such interventions may strengthen US dollar overall, presenting downside risk for bitcoin • Bitcoin often moves opposite to dollar; past yuan pressures have seen bitcoin underperform