The yuan has depreciated against the dollar in recent months. When Asian markets opened on May 31, the onshore yuan/dollar exchange rate once fell to 7.0978, falling below 7.1 for the first time since the end of November. The dollar index rose 2.7 percent last month. Meanwhile, bitcoin fell 7.3 percent, its biggest monthly drop since December. Separately, the yuan has fallen about 3 percent so far in May, its worst performance since last September. Investment banking giant Goldman Sachs said in a recent report that despite policymakers' efforts to boost market sentiment, the yuan may face more room to depreciate. Some observers believe that the PBOC’s potential intervention to curb fluctuations in the yuan could accelerate gains in the U.S. dollar index and exacerbate crypto market woes. Historically, as one of the five most important currencies in the International Monetary Fund, the depreciation of the Chinese yuan is considered to be beneficial to fiat currency alternative assets such as Bitcoin and gold, but the flip side is the strong US dollar. The U.S. dollar is already on an uptrend, and further strength could lead to continued tightening of global currencies and poor performance in risk assets such as cryptocurrency markets. And with concerns over the U.S. debt ceiling and risks to the banking sector receding, the central bank's focus will be squarely on still-excessive inflation and a far stronger-than-expected job market, and by July, policymakers are likely to ramp up again. interest. The Fed may eventually do enough to curb inflation, which would mean a fairly weak economy sometime in 2024.