It was terrible. Between 10 - 12 October 2025, BitCoin's price dropped $20,000 and more than $730bn was wiped out leading to the liquidation of more than 1.6m investors. It was a perfect storm of geopolitical shockwaves, technical vulnerabilities, and market overexposure.
The major catalysts behind the crash were more diverse than expected. Many of us look directly at Donald Trump's 100% Tariff on Chinese Imports which he imposed on 10 October 10, which in turn reignited fears of a global trade war, spooking investors and triggering a massive sell-off across risk assets—including crypto. However, at the same time over $19 billion in leveraged positions were wiped out in what’s now being referred to as the largest liquidation event in crypto history and there are some fears that the real figure could be as high as $400 billion due to under-reporting and API throttling on major exchanges like Binance who also contributed the the crash. A targeted attack, which exploited Binance’s margin system, using volatile assets like Ethena (USDE), Wrapped Beacon ETH (wBETH), and BnSOL as collateral triggered cascading liquidations and price manipulation, and thus deepened the crash.
What can we learn?
Once more another crypto crash has reminded us that we should avoiding over-leveraged positions, especially on platforms with opaque margin systems while making sure we.diversify across exchanges with transparent liquidation protocols and at all times we must remain vigilant to geopolitical triggers, as crypto remains highly sensitive to macroeconomic shocks both positive and negative (remember how the market responded to Trump's unexpected win last November?).
Just wanted to share some insight.
As always stay safe and well my friends.
