Bitcoin News Today: Trump Tariffs Trigger Crypto's Leverage Purge: $19B Lost, Resilience Tested

Trump's 100% tariffs on China triggered a $19.13 billion liquidation event in crypto markets on October 10–11, 2025, according to data from CoinGlass Forbes^[1]. Bitcoin dropped to $104,782, Ethereum and altcoins fell 20–40%, and over 1.6 million traders were liquidated. Amid the chaos, crypto whales executed high-risk leveraged bets, with some profiting from the crash while others re-entered the market with fresh long positions.

On-chain analysis revealed a whale earning $88 million by shorting Bitcoin just before the tariff announcement BeInCrypto^[2]. Another trader liquidated 90% of his Bitcoin short and exited Ethereum shorts entirely, securing an estimated $190–$200 million in profits Coindesk^[3]. Meanwhile, wallets like 0xb9fe, which lost $2 million during the sell-off, re-entered with $72.7 million in leveraged ETH longs, recovering losses and generating $3.6 million in profit TheStreet.com^[4].

Whales also adjusted spot positions. A wallet linked to 1kx Network's Christopher Heymann deposited $2 million into Hyperliquid to reopen a 10x leveraged long on ENA after prior losses. Another whale, 0x728, built long positions in ETH and Solana, accumulating $1.56 million in unrealized gains Coindesk^[3].

The crash exposed structural vulnerabilities in leveraged markets. Over 90% of liquidations were long positions, with Bitcoin and Ethereum accounting for $1.83 billion and $1.68 billion in losses, respectively CNN^[5]. Analysts argue the selloff acted as a "leverage purge," forcing weak hands out of the market while long-term holders reaccumulated at lower levels BeInCrypto^[2].

Post-crash activity highlighted diverging strategies. Some whales, like the 0xb9fe wallet, capitalized on rebounds, while others, such as the 0x5D2F address, faced renewed losses after briefly flipping a $27 million short into a $4.8 million deficit. Institutional players like MARA Holdings added 400 BTC ($46.31 million) through FalconX, signaling confidence in Bitcoin's long-term trajectory Coindesk^[3].

Market observers emphasized the role of algorithmic trading and liquidity dynamics in amplifying volatility. While no evidence confirmed insider foresight, on-chain data and derivatives activity revealed patterns consistent with pre-announced positioning. The speed and scale of the crash were attributed to interconnected market systems rather than perfect prediction BeInCrypto^[2].

Key indicators to watch include on-chain flows from large wallets, perpetual futures funding rates, and macroeconomic factors like China's response to tariffs. Derivatives data showed short positions extending heavily, with Bitcoin's funding rates remaining slightly positive, indicating lingering bullish sentiment Coindesk^[3].

The event underscored crypto's susceptibility to geopolitical shocks but also its resilience. If the market stabilizes, the purge of excessive leverage could clear the path for renewed growth. However, prolonged volatility or further trade escalations may delay a rebound. For now, the October 2025 crash remains a defining stress test for the bull market cycle.