China Restricts Rare Earths, Dollar Falls, Bitcoin Surges

China has imposed strict limits on rare earth exports to the US military sector, cutting off over 90% of global supply. The move aims to pressure Washington by disrupting key tech and defense supply chains. Macro analyst Luke Gromen says this signals a weakening US dollar and accelerating currency debasement. He predicts investors will shift to hard money assets such as Bitcoin to hedge against inflation and dollar weakness, while stablecoins offer only a temporary fix. The US Dollar Currency Index is down more than 10% year-to-date—its worst performance since 1973—and the dollar has lost 40% of purchasing power since 2000. As confidence in the US dollar falls, Bitcoin and gold have reached new highs. Meanwhile, President Trump has threatened 100% tariffs on Chinese goods, further escalating tensions. China’s third-quarter GDP growth may hit a one-year low due to a property slump and weak trade demand, prompting Beijing to consider broader stimulus. Crypto traders should monitor rare earth export restrictions and dollar trends when adjusting their Bitcoin allocations.