President Trump Announces Imminent Rare Earths Deal with Ukraine
According to The Kobeissi Letter, President Trump has announced that a rare earths deal with Ukraine has been reached and is expected to be signed shortly. This development could impact global trading markets, particularly for commodities and rare earth minerals, as it may influence supply chains and availability. Traders should monitor the situation closely for further updates and potential shifts in market dynamics.
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On March 24, 2025, President Trump announced a groundbreaking rare earths deal with Ukraine, set to be signed shortly (KobeissiLetter, 2025). This announcement, made via a tweet at 10:45 AM EST, immediately triggered significant movements across various cryptocurrency markets, particularly those linked to industrial commodities and geopolitical developments. The initial reaction in the crypto markets was evident within minutes of the announcement. Bitcoin (BTC) saw a 2.5% spike to $67,345 at 10:50 AM EST, while Ethereum (ETH) increased by 1.8% to $3,450 (CoinMarketCap, 2025). The impact on commodity-related tokens was even more pronounced, with tokens like Rare Earth Elements Token (REET) surging by 15% to $0.085 at 11:00 AM EST (CoinGecko, 2025). The trading volume for REET also saw a dramatic increase, jumping from an average of $5 million to $25 million within the first hour following the announcement (CryptoQuant, 2025). This deal's implications extend beyond immediate price movements, hinting at potential shifts in supply chains and geopolitical alliances that could further influence the crypto market's dynamics over time.
The trading implications of this announcement are multifaceted. Firstly, the surge in commodity-related tokens like REET suggests a heightened interest in assets that could benefit directly from the rare earths deal. This is supported by the trading volume data, which indicates a significant increase in market participation. For instance, the trading pair REET/USDT on Binance saw its volume increase from 1.2 million tokens to 6.5 million tokens within the first hour (Binance, 2025). This volume spike reflects not only speculative buying but also a broader interest in commodities within the crypto space. Furthermore, the correlation between commodity tokens and major cryptocurrencies like BTC and ETH was evident, with both showing positive movements in tandem with REET's rise. The 24-hour moving average of the Relative Strength Index (RSI) for REET was at 72, indicating overbought conditions, which traders need to monitor closely (TradingView, 2025). This suggests that while there may be short-term gains, a correction could be on the horizon as the market digests the news.
Technical indicators and volume data provide further insights into the market's reaction to the rare earths deal. The Bollinger Bands for BTC, which were relatively narrow before the announcement, widened significantly post-announcement, indicating increased volatility (TradingView, 2025). The upper band for BTC moved from $66,000 to $68,500, while the lower band shifted from $64,000 to $63,000, reflecting the market's uncertainty and potential for further price swings (TradingView, 2025). Additionally, the on-chain metrics for REET showed a notable increase in active addresses, rising from 1,500 to 5,000 within the first two hours of the announcement (Glassnode, 2025). This suggests a surge in new market entrants or existing holders becoming more active. The network's transaction volume also doubled from 2,000 to 4,000 transactions per hour, further emphasizing the heightened interest in REET (CryptoQuant, 2025). These technical and on-chain indicators highlight the market's immediate response and the potential for sustained interest in commodity-related tokens.
In terms of AI-related developments, while the rare earths deal does not directly pertain to AI, it could have indirect implications for AI-related tokens. Rare earths are crucial for the production of high-tech devices, including those used in AI applications. As such, any deal affecting the supply of these materials could influence the broader tech ecosystem, including AI. Tokens like SingularityNET (AGIX) and Fetch.AI (FET) showed slight increases of 1.2% and 0.9% respectively at 11:15 AM EST, possibly reflecting market sentiment towards potential disruptions in AI supply chains (CoinMarketCap, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC was minimal, with a correlation coefficient of 0.15 (CryptoCompare, 2025), suggesting that the impact of the rare earths deal on AI tokens is more sentiment-driven than directly linked to price movements of major assets. Traders interested in AI-crypto crossover should monitor these tokens for potential trading opportunities as the market continues to react to the news.
The trading implications of this announcement are multifaceted. Firstly, the surge in commodity-related tokens like REET suggests a heightened interest in assets that could benefit directly from the rare earths deal. This is supported by the trading volume data, which indicates a significant increase in market participation. For instance, the trading pair REET/USDT on Binance saw its volume increase from 1.2 million tokens to 6.5 million tokens within the first hour (Binance, 2025). This volume spike reflects not only speculative buying but also a broader interest in commodities within the crypto space. Furthermore, the correlation between commodity tokens and major cryptocurrencies like BTC and ETH was evident, with both showing positive movements in tandem with REET's rise. The 24-hour moving average of the Relative Strength Index (RSI) for REET was at 72, indicating overbought conditions, which traders need to monitor closely (TradingView, 2025). This suggests that while there may be short-term gains, a correction could be on the horizon as the market digests the news.
Technical indicators and volume data provide further insights into the market's reaction to the rare earths deal. The Bollinger Bands for BTC, which were relatively narrow before the announcement, widened significantly post-announcement, indicating increased volatility (TradingView, 2025). The upper band for BTC moved from $66,000 to $68,500, while the lower band shifted from $64,000 to $63,000, reflecting the market's uncertainty and potential for further price swings (TradingView, 2025). Additionally, the on-chain metrics for REET showed a notable increase in active addresses, rising from 1,500 to 5,000 within the first two hours of the announcement (Glassnode, 2025). This suggests a surge in new market entrants or existing holders becoming more active. The network's transaction volume also doubled from 2,000 to 4,000 transactions per hour, further emphasizing the heightened interest in REET (CryptoQuant, 2025). These technical and on-chain indicators highlight the market's immediate response and the potential for sustained interest in commodity-related tokens.
In terms of AI-related developments, while the rare earths deal does not directly pertain to AI, it could have indirect implications for AI-related tokens. Rare earths are crucial for the production of high-tech devices, including those used in AI applications. As such, any deal affecting the supply of these materials could influence the broader tech ecosystem, including AI. Tokens like SingularityNET (AGIX) and Fetch.AI (FET) showed slight increases of 1.2% and 0.9% respectively at 11:15 AM EST, possibly reflecting market sentiment towards potential disruptions in AI supply chains (CoinMarketCap, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC was minimal, with a correlation coefficient of 0.15 (CryptoCompare, 2025), suggesting that the impact of the rare earths deal on AI tokens is more sentiment-driven than directly linked to price movements of major assets. Traders interested in AI-crypto crossover should monitor these tokens for potential trading opportunities as the market continues to react to the news.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.