MarketsBitcoin
|3 min ReadPrice floors against China send Bitcoin to $111K
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Washington’s move, Beijing’s backdrop
The trade fight escalated. The Trump administration is setting price floors for American rare earth companies. U.S. Treasury Secretary Scott Bessent called it necessary to compete with “non-market” economies like China.
China quietly expanded rare earth export controls last week. The White House threatened a “massive increase of tariffs.” That public warning preceded the largest crypto liquidation on record. More than 410 billion in value within days. Stocks were mostly up on Wednesday. Bitcoin fell.
On Tuesday, China sanctioned five U.S. subsidiaries of South Korea’s Hanwha Ocean. Washington answered with tariffs up to 150 percent on Chinese maritime goods. Then Bessent sharpened the message, saying China wants to “pull everybody else down with them.”
What price floors mean
Bessent told CNBC the U.S. will set price floors and use forward buying “across a range of industries” to ensure supply security. Price controls set minimum prices. Governments can also pre-buy output and even take equity stakes. He said the goal is self-sufficiency with allies. He also warned, “We do have to be very careful not to overreach.”
The policy pop lifted rare earth stocks. Bitcoin did not share the bid. Higher mandated prices can choke demand unless the government absorbs excess supply. That risk keeps traders cautious. The tone is firm. The reaction is mixed. Everybody knows it.
By the numbers
Twenty-four-hour volume fell 22.97 percent to 2.2 trillion. Bitcoin dominance rose 0.78 percent to 59.70 percent as BTC still outperformed most altcoins.
Futures open interest eased 1.73 percent to 85.05 million for the day. Longs made up 28.76 million.
The policy fight is real. The stakes are huge. Bitcoin is the pressure gauge in plain sight.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.