On the night of October 10th to 11th, a major crypto event unfolded, with Bitcoin dropping to $102,000, Ethereum crashing to $3,512, and Solana plunging to $177 due to Donald Trump's unexpected tariff announcement. This flash crash sent shockwaves through the financial markets, sparking debates within the community: is it a leverage purge or a historic buying opportunity?
At 10:57 AM (Eastern Time), President Trump posted a message announcing a “massive increase” in tariffs on China. Three minutes later, at 11:00 AM, the S&P 500 had already erased $700 billion in market capitalization, according to The Kobeissi Letter. This shockwave immediately spread to Bitcoin and the crypto market, already weakened by excessive leveraged positions.
The result: $9.58 billion liquidated in 24 hours, affecting 1.5 million traders. As shown in @unusual_whales’ heatmap, all sectors, from tech giants (NVDA, AAPL) to cryptocurrencies, turned blood red.
However, the tariff announcement may have been strategically orchestrated. This theory of deliberate manipulation aligns with reports of a trader who earned $88 million by shorting Bitcoin 30 minutes before the official announcement, fueling suspicions of large-scale insider trading.
For seasoned observers, this type of liquidation event, though brutal, is an integral part of crypto cycles. The purging of excessive leverage cleanses the market and creates attractive entry points for spot investors. Historically, crashes of this magnitude have often preceded explosive rallies, as was the case after the March 2020 COVID crash that paved the way for the 2021 altseason.
The strategy recommended by veterans is clear: avoid any leverage, accumulate quality assets in spot, and exercise patience. Bitcoin at $102,000, Ethereum at $3,512, and Solana at $177 represent price levels that, just a few months ago, seemed unattainable.
For those with capital and nerves of steel, this purge could well be the opportunity of the decade. The question remains whether the worst is behind us or if more turbulence awaits the markets in the coming days.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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