Key Takeaways
Why did crypto markets crash?
A surprise 100% tariff announcement from President Trump triggered over $19 billion in liquidations; the largest leveraged wipeout in crypto history.
Has Bitcoin hit the true market bottom?
Not yet. Investors are still in profit, meaning full capitulation and emotional reset haven’t occurred.
Global crypto markets saw their largest leveraged wipeout on record on the 10th and 11th of October, with over $19 billion in positions liquidated.
The crash followed a surprise tariff announcement from President Donald Trump and a well-timed short by a major crypto whale.
The sudden crash wiped out weeks of speculative gains in both Bitcoin [BTC] and altcoins. Now, the community remains unsure if the market has cleared out all the excess leverage or if more downside is still to come.
The $19 billion domino effect
In less than 24 hours, the markets witnessed an unprecedented liquidation cascade, with more than $19 billion in leveraged positions erased and over 1.6 million traders wiped out.
Source: X
The trigger? A sudden 100% tariff announcement from President Trump that hit just minutes after a crypto whale reportedly opened massive short positions.
Source: X
According to The Kobeissi Letter, within half an hour of the post, liquidations soared past $19.5 billion, with $16.7 billion of those coming from overleveraged longs. Platforms like Hyperliquid [HYPE] alone saw over $10 billion in long positions flushed.
Source: X
The crash showed how weak weekend liquidity and high investor greed made the market fragile. One political surprise was enough to trigger the biggest wipeout in crypto history.
A market purge, but not yet a bottom
While the $19 billion liquidation cleared out excessive leverage, it didn’t trigger full-blown capitulation.
Reports showed that the Net Unrealized Profit/Loss (NUPL) held around 0.51 at press time, meaning most investors remain in profit despite the sell-off.
Source: CryptoQuant
The crash was fast and mechanical, more panic than surrender.
Source: CryptoQuant
However, exchanges like Binance played a stabilizing role.
Data showed whales moving funds and inflows surging just before the drop, proving a deliberate risk reset. Binance’s Spot Trading Volume jumped to $12.6 billion, absorbing much of the chaos.
The result was a cleaner market structure, but without the emotional washout that usually signifies a true macro bottom.
The calm before the true reset
Despite the record-breaking liquidation, Bitcoin may not have hit its true bottom yet.
In past bear markets like March 2020 and November 2022, the NUPL metric dropped below zero, showing investors were deep in losses; a clear sign of capitulation.
This time, it stayed positive near 0.5, meaning many traders are still in profit.
Source: CryptoQuant
That optimism often comes before another drop, as fear hasn’t fully taken hold. Leverage may be cleared out, but sentiment hasn’t reset.
A stronger recovery may only come if panic deepens and NUPL falls further.
