Bitcoin News Today: "Rare-Earth Rivalry Drives Trump's Tariff Surge, Global Markets Pay the Price"

President Donald Trump announced on October 10, 2025, the imposition of an additional 100% tariff on Chinese imports, effective November 1, in response to Beijing's export controls on rare-earth minerals. The move, described as retaliation for China's "extraordinarily aggressive" trade policies, also includes export controls on "any and all critical software" starting the same date President Trump announces additional 100% tariff on China imports^[1]. Trump's announcement sent shockwaves through global markets, triggering a sharp sell-off in equities and cryptocurrencies. The S&P 500 fell 2.7%, the Dow Jones Industrial Average dropped 1.9%, and the Nasdaq tumbled 3.5% Trump announces 130% tariffs on China. The global trade war just …^[2].

The U.S. president accused China of attempting to "monopolize" the rare-earth industry, citing letters sent to countries detailing Beijing's plans to restrict access to production materials. Trump canceled a scheduled meeting with Chinese President Xi Jinping at the APEC summit in South Korea, citing "no reason" to proceed amid escalating tensions Trump threatens 'massive' tariffs on China, triggering stock market …^[3]. The tariffs, on top of existing 30% rates, mark a significant escalation in the U.S.-China trade war, which had previously seen tariffs reduced to 30% from 145% in a 2025 trade truce Trump threatens tech export limits, new 100% tariff on Chinese …^[4].

The crypto market mirrored traditional asset declines. Bitcoin (BTC) plummeted 10% to $107,000 from $122,000, while Ethereum (ETH) dropped 20% to $3,500. Altcoins such as Solana (SOL), XRP, and Dogecoin (DOGE) fell 15–30%, erasing $400 billion in market value within hours. Over $900 million in crypto positions were liquidated in the 24 hours following the announcement, with nearly $500 million in losses recorded in a single hour Crypto Crash: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in^[5]. Analysts attributed the crash to a "risk-off" flight to safety, with gold rising 1% and the U.S. dollar strengthening Ether Prices Plunge 20% To $3,500 As Tariff Fears Roil Markets^[6].

The trade dispute has deepened longstanding tensions over supply chains, particularly in semiconductors and rare-earth materials. China dominates 70% of rare-earth mining and 93% of magnet production, critical for U.S. military and tech sectors Bitcoin Crashes Hard After Trump’s 100% Tariff on China …^[7]. Trump's administration has previously restricted U.S. tech exports to China, including key AI chips, though many restrictions were later lifted. The latest move risks further disrupting global trade, with economists warning of potential inflationary pressures and economic instability Trump Tariff Threat on China Sends Bitcoin Tumbling Below $119K^[8].

Analysts noted the fragility of the recent trade truce. Wendy Cutler of the Asia Society Policy Institute highlighted the "unwillingness of both sides to de-escalate," while Cole McFaul of Georgetown University observed that Beijing's confidence in negotiations has grown Trump threatens 'massive' tariffs on China, triggering stock market …^[9]. Craig Singleton of the Foundation for Defense of Democracies warned that the tariff truce could collapse entirely, with both nations "reaching for economic weapons" without backing down.

The U.S. government, currently in a shutdown, faces additional challenges. The Bureau of Labor Statistics confirmed it will release the September 2025 Consumer Price Index on October 24, but no further data will be published until the shutdown ends. Despite the turmoil, 45% of predictors on Myriad Markets remain bullish on Bitcoin, anticipating a rebound to $140,000 before a potential drop to $110,000 Bitcoin, Ethereum Dive Alongside Stocks as Trump Threatens …^[10].