Trader Scores $88 Million in 30 Minutes with Perfectly Timed Bitcoin Short

A trader reportedly made $88 million by shorting Bitcoin 30 minutes before US President Donald Trump's surprise tariff announcement, sparking debate about possible insider trading. The tariff announcement led to a 17% drop in Bitcoin, with over $20 billion in liquidations. The timing of the trade has raised questions about whether it was a lucky trade or a calculated move by someone with advance knowledge.

In a dramatic turn of events, Bitcoin (BTC) experienced a significant 17% drop following US President Donald Trump's surprise tariff announcement against China. The move, which came on October 10, 2025, was a response to China's recent restrictions on rare earth minerals, crucial for technology and manufacturing industries. The announcement triggered a wave of liquidations in the cryptocurrency market, with over $20 billion wiped out in just one hour Over $7 billion wiped out in 1 hour! Trump to impose 130% tariff on China; triggers crypto market sell off^[1].

The tariff announcement, which increased the total tariffs on Chinese imports to 130%, also included new export controls on critical software. This combination of factors led to a sharp sell-off in the crypto market, with Bitcoin falling from its lifetime high of $126,250 to $104,782, a decrease of 17.4% Trump tariff threat against China causes Bitcoin to fall 3%, $807M in liquidations^[2]. Ethereum (ETH) also took a hit, losing 5.8% of its value to $3,637.

The timing of the trade has sparked debate, as a trader reportedly made $88 million by shorting Bitcoin 30 minutes before the announcement. The trader's move has raised questions about whether it was a lucky trade or a calculated move by someone with advance knowledge. The trader's profit comes amidst a broader market rout, with the S&P 500 Index (.SPX) falling more than 2% and the crypto market experiencing its largest wave of liquidation since April Over $7 billion wiped out in 1 hour! Trump to impose 130% tariff on China; triggers crypto market sell off^[1].

The trade tensions between the US and China have been ongoing, with Trump accusing China of attempting to monopolize rare-earth elements. The export controls have been seen as a supply chain shock, affecting various industries and driving investors towards safe havens like US treasuries and gold Trump tariff threat against China causes Bitcoin to fall 3%, $807M in liquidations^[2].

The crypto market's correlation with tech equities has pulled it lower alongside broader risk-off sentiment. The market's volatility underscores the impact of geopolitical events on risk assets. As the situation between the US and China unfolds, investors are likely to remain vigilant, monitoring the potential implications for the crypto market and broader financial markets.