tl;dr
Bitcoin plummeted 7% as U.S.-China geopolitical tensions escalated over rare-earth exports and Trump's tariff threats, triggering $9 billion in liquidations and a broader market sell-off.
**Bitcoin Plummets 7% Amid Tariff Threats and Geopolitical Tensions**
Bitcoin (BTC) experienced a sharp decline of 7% on October 10, 2025, as global markets faced a broader sell-off triggered by U.S. President Donald Trump’s announcement of potential tariff hikes against China. The cryptocurrency fell to a 24-hour low of $105,000, marking one of the most volatile days for the asset in recent months. Total liquidations across crypto markets surged to $9 billion over the past 24 hours, with long positions absorbing nearly $600 million in losses in the last four hours alone, according to Coinglass data.
**Trump’s Tariff Threats and China’s Rare-Earth Moves**
The turmoil began after Trump took to Truth Social to accuse China of attempting to monopolize rare-earth elements, a critical component in technology, defense systems, and renewable energy. He announced plans for a “massive increase of tariffs on Chinese products” entering the U.S., citing China’s recent export controls as a catalyst. The president also canceled a scheduled meeting with Chinese President Xi Jinping at the APEC summit in South Korea, vowing to “financially counter their move” based on China’s response.
China had tightened its rare-earth export controls between October 9 and 10, expanding licensing requirements to include additional elements and technologies. The move extended restrictions to foreign-made products containing Chinese rare-earth materials or processed using Chinese technology, asserting regulatory authority beyond its borders. Officials flagged defense applications for rejection and placed semiconductor and AI-related uses under heightened scrutiny, sparking concerns over supply chain disruptions.
**Market Reactions and Risk-On to Risk-Off Shift**
The geopolitical tensions sent shockwaves through global markets. Rare-earth miners outside China saw shares surge on expectations of tighter supply, while tech and industrial equities faced pressure from potential input bottlenecks. The S&P 500 fell 2%, and the Nasdaq dropped 2.7% as investors reduced risk exposure. Bitcoin, heavily correlated with tech stocks, mirrored this broader risk-off sentiment, shedding 6.24% over 24 hours.
European officials expressed “great concern” over China’s actions, while U.S. policymakers weighed potential countermeasures. Trump framed China’s export controls as “sinister and hostile,” claiming the nation sought to “hold other nations captive” through resource dominance. He noted that the U.S. holds a “much stronger and more far-reaching” monopoly in certain areas but had not deployed it until now. Trump also questioned whether China coordinated its move with the timing of a Middle East peace announcement, though no evidence of such coordination was provided.
**Bitcoin’s Position Amid Volatility**
As of 11:03 pm UTC on October 10, 2025, Bitcoin was ranked #1 by market cap, with a $2.27 trillion valuation and a 24-hour trading volume of $123.6 billion. Despite the drop, BTC remained resilient compared to other risk assets, though its price briefly fell below the $118,000 support level. Analysts suggest the sell-off reflects heightened uncertainty, with further volatility likely as markets digest the implications of China’s policies and potential U.S. retaliatory measures.
**Looking Ahead**
The interplay between geopolitical tensions, supply chain vulnerabilities, and monetary policy will continue to shape crypto and traditional markets. As investors navigate this turbulent landscape, the role of rare-earth elements—and the strategic moves surrounding them—could prove pivotal in determining the trajectory of global trade and investment. For now, Bitcoin’s path remains intertwined with broader macroeconomic shifts, underscoring the fragility of markets in an increasingly interconnected world.