Bitcoin Updates: Trump and Xi Discuss Crypto Market Fluctuations Through Rare Earth Policies and Tariff Changes

On October 30, US President Donald Trump and Chinese President Xi Jinping convened in South Korea for a crucial discussion aimed at easing trade frictions that have rattled global financial markets, including the cryptocurrency sector. Against a backdrop of rising tariffs and export limitations, the leaders concentrated on loosening rare earth export controls and lowering import taxes—steps that, according to analysts, could help steady

prices and mining activities during recent market swings, as highlighted in a .

This summit followed several months of tit-for-tat trade actions between the two largest economies. In September, Trump’s announcement of a potential 100% tariff on Chinese imports triggered a sharp downturn in crypto assets, with Bitcoin tumbling from $121,560 to under $103,000 by October 10, according to Coinotag. Likewise, China’s curbs on rare earth exports—vital for both semiconductor manufacturing and crypto mining equipment—sparked concerns about supply chain interruptions. The White House indicated that the Trump-Xi meeting suggested possible cooperation on economic strategies to prevent further market instability, Coinotag reported.

Among the main results of the summit was a tentative deal to hold off on the 100% tariff increase, with China expected to ease rare earth export limits and boost purchases of US agricultural goods such as soybeans, according to Coinotag. Insights from diplomatic sources and experts suggest these moves could relieve immediate stress on global markets. For digital assets, reduced tariff threats may help prevent panic selling tied to trade disputes. CoinMarketCap’s historical data, referenced by Coinotag, shows that Bitcoin often rebounds by 10% within weeks after trade conflicts are resolved.

The leaders also tackled broader supply chain challenges impacting crypto mining. A 19% US tariff on Malaysian exports—Malaysia being a major supplier of Bitcoin mining hardware—has raised costs for American miners, Coinotag noted. US officials suggested that resolving these tariffs could simplify imports and benefit miners moving operations to energy-abundant states like Texas and Wyoming. Furthermore, China’s dominance in rare earth processing—controlling 80% of global capacity per the International Energy Agency—has heightened concerns in both AI and crypto industries. The summit may prompt efforts to diversify supply sources, indirectly aiding blockchain development that depends on advanced chips.

Market responses reflected the significance of the talks. Bitcoin climbed 1.6% to $111,390 after news of the summit broke, according to

, and prediction markets like Kalshi assigned a 93% likelihood to a deal, showing investor confidence, as reported in a . Experts such as David Sacks from the Council on Foreign Relations pointed out that loosening trade restrictions could support not only traditional markets but also emerging fields like blockchain by ensuring steady access to hardware, Coinotag noted.

Beyond tariffs, the leaders also discussed broader geopolitical concerns. Trump stressed the need for stability in the Asia-Pacific and cautioned against Chinese actions toward Taiwan, a topic previously mentioned in the Coinotag preview. Such geopolitical risks continue to be a major factor for crypto assets, which often rally during periods of global uncertainty.

Despite some progress, the summit’s achievements are still tentative. While an initial trade agreement was announced, with US Treasury Secretary Scott Bessent declaring that tariffs had been "effectively averted," long-term solutions for rare earths and semiconductors remain unresolved, as covered by the

. At the same time, Malaysia’s ongoing ban on raw rare earth exports—even after signing a critical minerals agreement with the US—underscores the difficulties in reducing reliance on China, according to