Bitcoin News Today: Rare-Earth Rivalry Intensifies as Trump's Tariffs Send Global Markets Into Tailspin

Trump's announcement of a 100% tariff on Chinese goods, effective November 1, 2025, triggered a sharp sell-off in global markets, with Bitcoin plummeting below $108,000 and other cryptocurrencies experiencing double-digit declines. The U.S. president cited China's new export controls on rare-earth materials and critical software as justification, escalating trade tensions that had previously seen a temporary truce in May 2025. The S&P 500 fell 2.7%, while the Nasdaq dropped 3.5%, reflecting broad risk-off sentiment Bitcoin Magazine^[1].

Bitcoin's price collapsed from around $117,000 to below $108,000 within hours, with Ethereum (ETH) and Solana (SOL) declining by 16% and 20%, respectively. Over $900 million in leveraged crypto positions were liquidated in 24 hours, per Coinglass data, with Bitcoin alone accounting for $670 million in losses. Altcoins like XRP, Cardano (ADA), and Dogecoin (DOGE) fell 20–40% as traders scrambled to unwind positions CoinDesk^[2]. Traditional markets mirrored the decline, with the S&P 500 erasing $1.2 trillion in value within 40 minutes of Trump's announcement The Kobeissi Letter^[3].

The U.S. and China have long been locked in a trade dispute over rare-earth elements, which are critical for semiconductors, AI, and defense technologies. China's recent expansion of export controls-adding five rare-earth metals to its restricted list and imposing licensing requirements for foreign firms-has intensified fears of supply chain disruptions. The move, framed by Beijing as a response to U.S. sanctions on Chinese tech companies, has been criticized as "disproportional" by analysts, though it grants China significant leverage in ongoing negotiations Associated Press^[4].

Trump's threat to cancel a planned APEC meeting with Chinese President Xi Jinping further heightened uncertainty. The president accused China of using rare-earths to "monopolize" critical industries, while China dismissed U.S. tariffs as "hostile." The tit-for-tat measures risk deepening a trade war that could strain global supply chains, particularly for sectors reliant on Chinese rare-earths, which account for 70% of global mining and 93% of permanent magnet production Al Jazeera^[5].

Market analysts noted Bitcoin's recent rally-up over 30% year-to-date-had entered a "euphoria phase," making it vulnerable to macroeconomic shocks. Some predict further volatility, with Bitcoin potentially testing $100,000 if trade tensions persist. However, others argue the dip could reset leverage and attract "buy-the-dip" activity, provided policymakers clarify their positions Coindesk^[6].

The U.S. government's ongoing shutdown and delayed inflation data releases added to market jitters. While Trump's past tariff threats have often failed to materialize, the current escalation-coupled with China's strategic use of legal and regulatory tools-suggests a more entrenched conflict. Both sides appear unwilling to back down, raising the risk of "mutually assured disruption" in global trade and financial markets Los Angeles Times^[7].