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On Friday, the top cryptocurrency by market value traded above $40,000, having lost 2% on Thursday when Jerome Powell, the head of the Federal Reserve, said things that made stocks fall.

This was the lowest level of the yuan (CNY) against the US dollar since July 2021. It was on track to lose 2.5% on the week. That's the biggest percentage drop in a single week since August 2015, according to the data source TradingView.

"Check out the Chinese yuan in the last few days. Weakening very quickly. Slower GDP growth and the Japanese yen collapsing are all problems for Japan. If the yuan weakens quickly, this is a signal not to take any risks "He is the founder and research head of investment research platform True Insights.

Some people, like Otavio Costa, a portfolio manager at Crescat Capital, think that the yuan could keep going down because China is going through a major economic downturn and needs to devalue its currency a lot.

Previous devaluations of the yuan caused a lot of chaos in traditional markets. Even though the S&P 500 fell 6.2% in August 2015, it hit its lowest point in 10 months because the yuan fell 2.5%. During the three months from December 2015 to January 2016, the yuan's depreciation continued to speed up.

Bitcoin is becoming more and more linked to stocks, which makes it more vulnerable to a Wall Street shake-up caused by the yuan. At this point, futures for the S&P 500 were pointing to a bad start for the market. On Thursday, the index fell about 1.5%, which was a lot.

Before 2020, bitcoin has always done well when the yuan has been weak. Perhaps Chinese investors bought bitcoin as a way to protect against the volatility of fiat currencies. However, China has banned bitcoin, which might make it hard for them to do so now.

Retailers aren't interested in bitcoin anymore.

A look at Google Trends shows that searches for "bitcoin" around the world have dropped to 17, which is the lowest since mid-2020. A year ago, the number of searches for "bitcoin" was more than 70, but now it's only 17.

Google Trends is a tool that many people use to find out what people are interested in. A value of 100 is often seen at market tops when there is a lot of retail interest.

It looks like the general public has lost interest in cryptocurrency and is no longer looking for information about the best one on the web.

It looks like the Ether options aren't worth the money.

Traders are looking for ether options, which are derivative contracts that offer both upside and downside protection, because of the low implied volatility in the market.

So, in my opinion, it makes sense to buy options (call and put) when volatility is low, says Samneet Chepal of LedgerPrime in a Telegram chat. Due to the choppy market action, traders are more comfortable selling vol, which makes them more likely to do so. The DeFi option vaults also have a big impact on the IV.