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

Bull Theory
/2 days ago
Trump’s 100% China tariff announcement sparked a historic crypto crash — $1T wiped out, $20B+ liquidated, and whales profiting $200M. But history shows: every purge resets the market. Leverage flushed, panic peaked — the next leg may just be starting.

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.

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