Trump’s Tariff Shock Just Triggered the Biggest Crypto Crash — And a New Cycle Reset

TRUMP JUST TRIGGERED THE BIGGEST CRYPTO CRASH
And it was all pre planned.
Here’s what happened 👇
Two days before Trump’s Truth Social post, one of Bitcoin’s oldest wallets suddenly started opening large short positions on $BTC and $ETH worth billions.
No catalyst. No headlines. Just silent movement onchain.
Then came the post.
Trump warned that China would face massive tariffs, hinting at a trade escalation.
Markets reacted instantly a small dip, some volatility, but nothing major yet.
But the real hit came hours later.
From the White House podium, Trump officially announced 100% tariffs on all Chinese imports starting November 1.
→ A shock no one priced in.
Within minutes, chaos followed:
→ S&P 500 fell over 2% - its sharpest single-day drop since April
→ Bitcoin ₿ plunged to $102K, erasing weeks of gains
→ Altcoins entered freefall, most dropping 70–90% within minutes
→ Over $20B–$22B in positions liquidated (real exposure likely $40B–$50B+)
→ Nearly $1T in crypto market cap wiped out in less than 3 hours
And here’s where things get strange 👇
30 minutes before Trump’s official announcement, that same whale doubled their short exposure.
When the market crashed, the positions were closed for an estimated $200M profit.
The timing was too perfect to ignore.
Was it coincidence or did someone know what was coming?
Because minutes after that, it wasn’t just traders getting hit.
It looked like a major entity got completely blown off.
The crash across large cap alts wasn’t normal volatility.
It felt structural as if a fund or desk was forced to unwind positions all at once.
Every exchange saw cascading liquidations.
Even USDE depegged 35–40%.
This wasn’t a retail dump.
It was a full leverage cleanse.
But here’s the bigger picture:
Every bull market has a moment like this a violent, sudden purge that resets leverage and clears weak hands.
→ March 2020 had it
→ Mid-2023 had it
→ Now October 2025 just got its own
And history says these purges don’t end bull runs, they restart them.
Because now:
→ Leverage is wiped out
→ Shorts are over-extended
→ Strong hands are quietly buying from panic sellers
Trump’s tariff threat may have triggered the drop,
but what follows next is the real story.
The market just flushed out months of excess in one move.
And when the dust settles, this becomes the base for the next expansion phase.
So yes, the headlines scream Market Crash.
But zoom out the structure didn’t break. It just reset.
The whales already took their entry.
Retail panic is peaking.
And history says, that’s exactly when the next leg begins.
After losing over $30M in the largest crypto liquidation event ever, a top trader reflects on what went wrong, the lessons learned about leverage and risk, and why he’s staying optimistic. It’s not the end — just the start of his next chapter.
Unipcs (aka 'Bonk Guy')/24 hours ago

Crypto just experienced the largest liquidation event ever — over $19B in leveraged positions and 1.6M traders wiped out in a single day. Triggered by Trumps tariff shock, the cascade revealed extreme leverage but may set the stage for a strong rebound.
The Kobeissi Letter/2 days ago

Trump’s sudden cancellation of his China meeting and threat of “massive tariffs” wiped $1.2T from U.S. markets in minutes. But analysts argue this is a bargaining move — not the start of a trade war. With AI investment and rate cuts ahead, dips may be buying opportunities.
The Kobeissi Letter/2 days ago

Many traders woke up to closed positions due to Auto-Deleveraging (ADL) — the last line of defense in perps markets when liquidity dries up. This thread breaks down how ADL works, why it’s triggered, and why even winning traders can get forced out.
Doug Colkitt/2 days ago

Bitcoin’s surge to $125K masks growing macro fragility. Liquidity buffers are vanishing, insider selling is surging, and institutional cracks are widening. The report warns of a coming liquidity crunch — and a potential market reversal in Q4.
Doctor Profit/2025.10.06

The last stage of a bull market isn’t about chasing every pump — it’s about discipline. Scale out, focus on winners, stay liquid, and preserve capital. Wealth is built across cycles, not in one sprint.
cevo/2025.10.03

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