Bitcoin News Today: Trump-Xi Trade Talks Target Crypto Volatility via Rare Earth and Tariff Adjustments

US President Donald Trump and Chinese President Xi Jinping held a pivotal meeting in South Korea on October 30, aiming to de-escalate trade tensions that have sent shockwaves through global markets, including cryptocurrency. The talks, held amid a backdrop of escalating tariffs and export restrictions, focused on easing restrictions on rare earth elements and reducing import duties, measures analysts say could stabilize Bitcoin prices and mining operations amid recent volatility, according to a Coinotag report.

The meeting follows months of retaliatory trade measures between the world's two largest economies. Trump's threat to impose a 100% tariff on Chinese goods in September triggered a sharp selloff in crypto markets, with Bitcoin plunging from $121,560 to below $103,000 on October 10, the Coinotag report noted. Similarly, China's restrictions on rare earth exports—critical for semiconductor production and crypto mining hardware—sparked fears of supply chain disruptions. The Trump-Xi dialogue, according to White House statements, signaled a potential alignment on economic policies to avoid further market turmoil, the Coinotag report added.

Key outcomes from the summit include a reported agreement to avoid the 100% tariff hike, with China poised to relax rare earth export controls and increase purchases of US agricultural products like soybeans, the Coinotag report indicates. These developments, drawn from diplomatic briefings and expert analysis, could alleviate immediate pressures on global markets. For cryptocurrency, reduced tariff risks may curb sell-offs linked to trade war anxieties. Historical data from CoinMarketCap shows Bitcoin often recovers 10% within weeks following trade dispute resolutions, the Coinotag analysis observed.

The meeting also addressed broader supply chain issues affecting crypto mining. A 19% US tariff on Malaysian exports—where the country has become a hub for Bitcoin mining hardware—has inflated costs for American operators, according to the Coinotag report. Resolving these tariffs, US officials indicated, could streamline imports and benefit miners relocating operations to energy-rich states like Texas and Wyoming. Additionally, China's rare earth restrictions, which control 80% of global processing capacity per the International Energy Agency, have raised alarms in the AI and crypto sectors. The talks may accelerate diversification efforts, indirectly supporting blockchain innovations reliant on advanced semiconductors.

Market reactions underscored the high stakes. Bitcoin rose 1.6% to $111,390 following confirmation of the summit, according to Barron's live coverage, while prediction markets like Kalshi priced a 93% probability of a deal, reflecting investor optimism, according to a Coinotag preview. Experts, including David Sacks of the Council on Foreign Relations, highlighted that easing trade barriers could bolster not just traditional economies but also emerging sectors like blockchain by ensuring stable hardware supplies, the Coinotag report noted.

Beyond immediate tariffs, the dialogue extended to strategic geopolitical issues. Trump emphasized the importance of maintaining stability in the Asia-Pacific, warning against Chinese moves to assert control over Taiwan, a point previously raised in the Coinotag preview. Such tensions remain a wildcard for crypto markets, which historically surge during geopolitical uncertainty.

The summit's success, however, faces challenges. While a preliminary trade framework was announced, with US Treasury Secretary Scott Bessent stating tariffs had been "effectively averted," long-term resolutions on rare earths and semiconductors remain unresolved, as reported by the Malay Mail. Meanwhile, Malaysia's continued ban on raw rare earth exports—despite a critical minerals deal with the US—highlights the complexity of diversifying supply chains away from China, according to Investing.com.

For now, the Trump-Xi meeting offers a glimmer of hope for crypto markets. With Bitcoin's price recovery tied to macroeconomic stability and mining profitability hinging on affordable hardware, the outcome of these talks could shape the industry's trajectory in 2025. Investors and operators alike will closely monitor policy updates, as the path to global trade harmony remains fraught with challenges.