China Hits Back at Trump's Tariffs with Rare Earth Restrictions — Wipes Over $500M from Crypto Market

China's retaliatory rare earth restrictions following Trump's latest tariff announcements have triggered massive cryptocurrency market volatility, wiping over $500 million from the global crypto market cap. The escalating U.S.-China trade dispute sent shockwaves through Bitcoin, Ethereum, and major altcoins as investors fled to traditional safe-haven assets amid mounting geopolitical tensions.

The cryptocurrency sell-off reflects broader market uncertainty as China's control over critical rare earth elements threatens global supply chains, particularly impacting blockchain mining operations and DeFi infrastructure. Bitcoin prices plummeted alongside traditional markets as the trade war intensifies, with cryptocurrency traders closely monitoring developments between the world's two largest economies.

This latest crypto market downturn highlights the increasing correlation between digital assets and macroeconomic factors. As China leverages its rare earth dominance against U.S. tariffs, cryptocurrency markets face continued pressure from regulatory uncertainty and trade disputes. Investors are reassessing risk exposure across Bitcoin, altcoins, and decentralized finance protocols as the trade conflict threatens global economic stability and blockchain technology adoption.