China’s Rare Earth Export Controls Trigger Cryptocurrency Market Turmoil

In October 2025, China initiated rare earth export controls, affecting global markets. Emerging from MOFCOM, the controls introduced a targeted licensing system, influencing sectors reliant on crucial resources.

Key players include China’s Ministry of Commerce. Announcement Nos. 55–62 outline the changes, reflecting strategic escalation in trade dynamics. This action highlights global supply chain vulnerabilities.

China’s Targeted Licensing Shakes Global Resource Markets

In October 2025, China initiated rare earth export controls, affecting global markets. Emerging from MOFCOM, the controls introduced a targeted licensing system, influencing sectors reliant on crucial resources.

Key players include China’s Ministry of Commerce. Announcement Nos. 55–62 outline the changes, reflecting strategic escalation in trade dynamics. This action highlights global supply chain vulnerabilities.

Crypto Values Plunge as Traders Flee to Safety

The cryptocurrency market faced significant disruptions following the announcement. Bitcoin’s price fell by 12%, while major altcoins like Ethereum and Solana suffered losses. Stablecoins and gold saw increased demand as investors sought safer assets.

These shifts emphasize financial instability and highlight concerns. Liquidity dropped in exchanges, primarily in Asia. Historical data indicates similar instances in the past, drawing parallels to current market dislocations.

2010’s Rare Earth Embargo Echoes in Crypto Markets

The move is reminiscent of the 2010 China rare earth embargo. Then, affected sectors rapidly sought alternatives, a pattern seen again as supply concerns resurface, significantly impacting digital currencies.

Experts from Kanalcoin suggest the controls could affect technological sovereignty and market structure. Data indicates increased pressure on crypto resilience, necessitating adaptive measures to mitigate future risks.

Dean Ball, former Senior Advisor, White House Office of Science and Technology Policy, “China has crafted a policy that gives it the power to forbid any country on Earth from participating in the modern economy. They can do this because they diligently built industrial capacity no one else had the fortitude to build. Now the rest of the world must do the same.”