The Big Short 2.0: Trump’s Tweet Triggers Crypto’s Collapse
Crypto’s wild rally meets a geopolitical reality check as Trump reignites the U.S.–China trade war, triggering over $6 billion in liquidations and sending shockwaves across global markets.

Markets don’t crash quietly. On October 10, 2025, chaos hit the crypto world with the force of a thunderclap after U.S. President Donald Trump announced plans to impose an additional 100% tariff on China and tighten export controls on key technologies. Within an hour, more than $6 billion in leveraged crypto positions vanished into thin air. The market’s euphoric rally screeched to a halt as traders watched Bitcoin, Ethereum, and a host of altcoins tumble in unison.
Bitcoin, which had just been flirting with a new all-time high of $126,250 earlier in the week, plunged over 12% after Trump’s Truth Social post blindsided investors. The world’s largest cryptocurrency briefly stabilized around $112,000, but the damage was done. According to data from Coinglass, more than $7.4 billion in bets on digital assets were wiped out within 24 hours, including $6.7 billion in long positions and another $695 million in shorts. It was the largest liquidation event since April.
