BlockBeats News, October 12th, The Kobeissi Letter released its latest market analysis stating, “Regarding the news of China’s rare earth export control, it was actually released around 8:30 am Eastern Time on October 9th, 26 hours before BitTrump’s post. In other words, this was originally a ‘non-news event’—until Trump posted his comments over a day later.”
Last night, China issued a statement clarifying its “export control” policy on rare earths. In this statement, it is stated that the new control measures are not a comprehensive export ban, and applications that “comply with regulations” will still be approved. During the market downturn last Friday, our view was that Trump’s threat to “significantly increase” tariffs on China was just a negotiating tactic.
Following China’s clarification, we believe the likelihood of Trump actually implementing a “significant increase” in tariffs on China is extremely low. As of now, it appears that the largest cryptocurrency liquidation in history and the $2.5 trillion market cap evaporation of the S&P 500 seem to have stemmed from a massive misunderstanding. We anticipate that another “trade agreement” will soon be reached.”
