The crypto market just witnessed a day unlike any other. In less than 24 hours, around $19 billion worth of positions were liquidated, the largest single-day wipeout in crypto history. Bigger than the collapse of LUNA, bigger than the COVID crash, and even bigger than the FTX fallout.
Bitcoin price dipped by 10% within hours. XRP, HBAR, JASMY and many other cryptos lost more than half their values, and SOL price dipped 20% within a short time. For many traders, it felt like the end of a bull cycle. Yet analysts believe there is more to this event than panic and red candles.
What you'll learn 👉
BTC and the Timeline of the Record Liquidations
The scale of the selloff shocked even veteran traders. Within hours, Bitcoin price crashed toward $102,000, erasing weeks of gains. Altcoins dropped between 50% and 80%, leaving long positions completely wiped out across major exchanges.
Market data showed cascading liquidations triggered by high leverage and thin order books. Analysts pointed to a mix of geopolitical and structural factors that made the selloff far more severe than expected.
According to Bull Theory, the sequence of events started days before the official trigger. “Two days before Trump’s Truth Social post, one of Bitcoin’s oldest wallets suddenly opened large short positions on BTC and ETH worth billions,” they explained. “No headlines, no news, just quiet on-chain movement. Then came the tariffs.”
When former President Donald Trump announced a 100% tariff on all Chinese imports starting November 1, traditional markets immediately reacted. The S&P 500 fell more than 2%, marking its sharpest single-day drop since April. Crypto followed instantly.
Analysts Compare the Crypto Crash to March 2020
Market commentators rushed to interpret the chaos, and opinions varied on what it means for the coming months.
Ash Crypto, a widely followed analyst, compared the event to the COVID crash of March 2020. “BTC and ETH crashed hard back then, alts dumped more than 70% in a single day. Everyone lost hope,” he said. “But the market went parabolic afterward. BTC climbed from $3,800 to $69,000. ETH jumped from $90 to $4,800. History could repeat itself.”
Today’s crash is similar to the Covid crash of March 2020, where it felt like it’s over.
— Ash Crypto (@Ashcryptoreal) October 11, 2025
BTC and ETH crashed hard.
Alts dumped -70% in a single day.
Almost every long liquidated.
Everyone lost hope.
Shorts piled up.
But you know what happened?
The market went parabolic!!!…
Bull Theory offered a deeper look into how the event unfolded on-chain. They suggested that the sequence was too perfectly timed to be random. “Thirty minutes before Trump’s official announcement, that same whale doubled their short exposure,” they said. “When the market crashed, those positions were closed for an estimated $200 million profit. The timing was too perfect to ignore.”
The analyst added that this kind of structural liquidation often resets market leverage and prepares the ground for another cycle. “Every bull market has a moment like this, a violent purge that clears weak hands. March 2020 had it, mid-2023 had it, now October 2025 has its own.”
Why Altcoins Fell the Fastest
Solana, XRP and many altcoins fell harder than BTC. Analysts say this reflects the amount of leverage built up in those markets. Tokens had seen steep rallies over the past few months, with traders using high-margin positions to chase short-term gains.
When Bitcoin price began to fall, those positions became the first targets for liquidation. On-chain data also indicated that large funds and trading desks may have been forced to unwind their holdings to cover losses elsewhere.
MONK, a market commentator, described how liquidity dried up across exchanges during the panic. “Market makers started pulling their quotes as spreads widened,” he explained. “Traders panic sold into thin books, causing price gaps everywhere. Some desks might have gotten blown up. Others were just trying to survive the chaos.”
The rough outlines of what happened today:
— MONK (@defi_monk) October 11, 2025
– Trump in the AM starts re-escalating tariff concerns after 5 months of acting normal and allowing the market to get comfortable w the TACO thesis. This is a pretty big deal
– Most people still assume it’s a nothing burger despite an…
According to MONK, the disorder led to cascading liquidations that pushed prices to levels that seemed unimaginable just hours before. “At one point, the total crypto market cap wicked down almost 50%,” he noted. “This was not normal volatility, it was structural. Books were empty, quotes were broken, and everyone wanted out.”
What the BTC Price Collapse Reveals About Market Cycles
Despite the panic, analysts agree that the fundamentals of BTC remain intact. The current structure, while bruised, shows signs of a typical leverage flush that clears the path for a healthier recovery.
Bull Theory emphasized this idea in their closing remarks. “Trump’s tariff threat may have triggered the drop, but what follows is the real story,” they said. “The market just flushed out months of excess in one move. Now leverage is gone, shorts are overextended, and strong hands are buying quietly.”
🚨 TRUMP JUST TRIGGERED THE BIGGEST CRYPTO CRASH
— Bull Theory (@BullTheoryio) October 11, 2025
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… pic.twitter.com/5cbTNJpB2f
The sentiment is cautiously optimistic. Past cycles have often included events like this, short, violent corrections that remove speculation and reset market momentum. Many long-term investors see this as part of the natural rhythm of crypto markets, not the end of one.
Could This Crash Become Another 2020 Crypto Moment?
For those who remember the despair of March 2020, this crash carries a familiar rhythm. The speed, the scale, the liquidations, all echo a moment when Bitcoin looked finished before it rose to new all-time highs.
Ash Crypto summarized it best: “These are the kind of days that test conviction. Back then, people thought it was over, and that’s exactly when the next leg began.”
Read Also: Inside the $19 Billion Crypto Crash: How CEX Liquidations Wiped Out the Market
Whether that pattern repeats remains to be seen. What is clear is that the crypto market just reset in dramatic fashion. Bitcoin price, Solana price, and XRP price have taken historic hits, but if history is any guide, these moments often mark the start of something new rather than the end.
The market has survived LUNA, FTX, and COVID. Now it has survived October 2025. What happens next could define the next phase of the crypto bull cycle.
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