12 Oct 2025
The crypto market experienced its largest liquidation event in history, with billions of dollars wiped out and major tokens crashing dramatically. This market upheaval is attributed to Donald Trump's aggressive trade rhetoric against China, proposing 100% tariffs and an extraordinary aggressive position on trade.
The crypto market experienced an 'Armageddon' event, with Ethereum falling from $4,000 to $3,300, Bitcoin dropping to $109,000 (though later recovering to $113,000), and tokens like Arbitrum plummeting from 40 cents to 10 cents. This constituted the biggest liquidation event in crypto history, wiping out approximately $5 billion.
The market crash was triggered by Donald J. Trump's declaration of an aggressive trade war against China, specifically his threat of 100% tariffs and China's own stated intention to impose large-scale export controls effective November 1st.
While the S&P 500 experienced a significant crash in response to the trade war news, it was still faring relatively well compared to the crypto market's extreme downturn.
Despite the market turmoil, personal trades on futures resulted in a small loss of $5,000, attributing this to accurate and careful risk management. Maintaining full control of assets on self-custodial platforms is emphasized.
A theory suggests that similar to past patterns, bad news released by Trump on a Friday typically leads to market panic and volatility over the weekend, followed by a recovery or pump on Monday or Tuesday as good news emerges. This event is seen as a potential orchestrated manipulation.
Traders are advised to be cautious with leverage due to the extreme risk. The speaker plans to look for long trade entries after observing weekend market structure and will share these trades for free in a Telegram channel.
The event is characterized as potentially one of the biggest crypto manipulations in the history of humankind, following a familiar pattern where Trump's announcements cause weekend market chaos followed by recovery.
This has been the biggest liquidation event in the history of crypto, and it is most likely orchestrated as the biggest crypto manipulation that has ever happened.
| insight | description |
|---|---|
| Event Magnitude | The crypto market experienced its biggest liquidation event ever, with approximately $5 billion wiped out and major tokens like Ethereum, Bitcoin, and Arbitrum seeing dramatic price drops. The Trump token specifically dropped from $7 to $1 in one day. |
| Primary Catalyst | Donald Trump's announcement of a 100% tariff on China and China's stated intent to impose large-scale export controls initiated a 'trade war,' which served as the direct cause for the market collapse. |
| Market Reaction Pattern | Historically, Trump's negative announcements on Fridays lead to weekend market panic and volatility, with a subsequent recovery or 'pump' beginning on Monday or Tuesday. This current event is expected to follow a similar pattern. |
| Risk Management Importance | Careful risk management, especially with leverage, is crucial during such volatile periods. Prudent trading strategies can mitigate significant losses, as demonstrated by limiting losses to $5,000 on futures trades during the dump. |
| Manipulation Hypothesis | The event is theorized to be an orchestrated market manipulation, aligning with observed historical patterns where significant market moves coincide with specific external announcements, potentially aiming to create panic for strategic entries. |
