According to @KobeissiLetter, President Trump said China is becoming very hostile, controls rare earths, holds a monopoly, sees no reason to meet President Xi in two weeks, is preparing a massive increase of tariffs on Chinese products, and is considering many other countermeasures (source: @KobeissiLetter on X, Oct 10, 2025). US stocks fell to new weekly lows immediately after these remarks, signaling risk-off sentiment in equities (source: @KobeissiLetter on X, Oct 10, 2025). China’s dominant position in rare-earth processing amplifies supply-chain risk for EVs and semiconductors if trade tensions escalate, adding sector-specific downside risk (source: U.S. Geological Survey, Mineral Commodity Summaries 2024). Trade policy uncertainty is historically associated with lower equity returns and higher volatility, which can propagate across risk assets (source: Caldara and Iacoviello, Federal Reserve Board, Trade Policy Uncertainty Index, 2022 update). Given this equity shock, traders are watching BTC and ETH because crypto’s correlation with U.S. stocks rose markedly in 2020–2022, increasing cross-asset spillovers during macro stress (source: International Monetary Fund, Crypto Prices Move More in Sync With Stocks, Jan 2022). For risk management, market participants are monitoring VIX for volatility regime shifts and DXY for dollar strength that can pressure crypto liquidity in risk-off episodes (source: Cboe Global Markets VIX overview; ICE U.S. Dollar Index methodology).

According to The Kobeissi Letter, the S&P 500 fell more than 70 points within seconds after President Trump said he is calculating increased tariffs on Chinese products and stated there is no reason to meet Chinese President Xi, source: The Kobeissi Letter on X, Oct 10, 2025. This headline-driven drop indicates acute intraday volatility in US equities with tariff escalation cited as the immediate catalyst, source: The Kobeissi Letter on X, Oct 10, 2025. No direct cryptocurrency reaction was reported in the source; crypto traders may monitor for spillover risk from the equity shock described, source: The Kobeissi Letter on X, Oct 10, 2025.