Bitcoin News Today: Crypto's Liquidity Purge Erases $370B as 100% Win Rate Trader Loses $38M

The crypto market's October 2025 bloodbath, marked by unprecedented liquidations and geopolitical turbulence, has left even the most seasoned traders reeling. Among the casualties: a trader with a 100% win rate who lost $38 million during the sector's worst month in nearly a decade, according to a Yahoo report. The meltdown, triggered by a cascade of events including a surprise 100% tariff announcement by President Donald Trump on Chinese imports, saw $19.37 billion in leveraged positions wiped out in 24 hours—nearly nine times the February correction. Bitcoin (BTC) plummeted 18%, Ethereum (ETH) fell 20%, and altcoins like Solana and Dogecoin lost 60–80% of their value.

The crisis unfolded as a "liquidity purge," according to analysts, with open interest collapsing to early-2025 levels. By Oct. 29, the market cap had evaporated $370 billion, resetting years of gains. Traders who had navigated prior cycles with precision found themselves trapped in a perfect storm of leverage, liquidity droughts, and geopolitical uncertainty. One trader, who had maintained a 100% win rate through aggressive long positions on BTC and ETH, saw their portfolio decimated when a $5 million Ethereum position—recovered after the Oct. 11 crash—was liquidated during the Oct. 31 selloff, according to Crypto.news.

The Fed's 25-basis-point rate cut on Oct. 31, initially seen as a lifeline for risk assets, instead exacerbated the crisis. Traders interpreted the move as a "sell-the-news" opportunity, triggering $890 million in liquidations within 24 hours. Bitcoin fell 0.5% to $109,727, while Ethereum dropped to $3,852. The Crypto Fear & Greed Index sank to 29, its lowest since the Terra Luna collapse.

Altcoins bore the brunt of the carnage. Bitcoin's dominance surged above 60%, signaling a delayed altseason 2025, as reported by Coinpedia. Traders who diversified into smaller tokens faced losses as liquidity dried up. "This is the worst crypto bull market ever," said analyst Scott Melker, noting that only BTC and ETH holders had meaningfully profited, as reported by Benzinga. Two bullish traders, who had posted over $17 million in realized profits with 100% and 69.2% win rates, saw their gains evaporate as altcoins cratered.

The crash exposed systemic fragility in the crypto ecosystem. High leverage, concentrated exposure to U.S.-China trade tensions, and the Fed's hawkish undertones created a feedback loop of panic. By Oct. 29, the market had lost 1.5% of its cap, hovering at $3.7 trillion. While some analysts view the selloff as a mid-cycle correction, others warn of deeper structural risks. "This wasn't just a correction—it was a purge," wrote one market observer.

As the dust settles, traders are left to reckon with the aftermath. For the 100% win rate trader, the $38 million loss underscores the volatility of a market where even the most disciplined strategies can unravel in hours.