Crypto Crash: $19.5 Billion Wiped Out In | Crypto News
The crypto market has erased more than $19.5 billion in leveraged positions in the past 24 hours, making it the most chaotic 24-hour period in crypto historical past. This crash, which noticed 1.6 million merchants pressured out of positions, was prompted by sudden US tariff bulletins on China and amplified by dangerous leverage across exchanges.Â
Bitcoin alone witnessed a $20,000 daily swing and erased $380 billion in market capitalization in a single day. This liquidation surpassed all earlier information by practically tenfold, surpassing information set during the FTX collapse and the March 2020 crash.
Liquidations Ripple Through Entire Crypto Market
The most current crypto market crash took many crypto buyers by shock. Notably, data shared by The Kobeissi Letter on the social media platform X revealed that a whole of $19.5 billion was liquidated between October 10 and 11, 2025, over 9 instances bigger than any prior event. To put that into context, the February 2025 liquidation event noticed only $2.2 billion erased, while the May 2021 crash cleared $1.2 billion.Â
Data across major exchanges confirmed that the sell-off was closely one-sided. Out of the $19.38 billion in whole liquidations, $16.7 billion got here from long positions, which is a 6.7-to-1 ratio in contrast to shorts. Nearly every exchange, from Binance to Bybit, noticed over 90% of liquidations hitting longs, with Hyperliquid alone recording $10.3 billion.Â
Crypto Exchange Liquidations. Source: @KobeissiLetter on X
This fast downturn is kind of notable, contemplating the crypto market’s greed index had climbed above 60 when Bitcoin’s price motion broke above $126,000 for the first time.
Crypto Fear and Greed Index. Source: @KobeissiLetter on X
What Caused The Crash?
The cause behind the crash may be attributed to a combine of prolonged market corrections following Bitcoin’s all-time high and rising tensions over new US tariffs on China. According to The Kobeissi Letter, the selloff unfolded through a sequence of completely timed occasions that tied geopolitical shocks to fragile market sentiment.
At 9:40 AM ET, some large Bitcoin holders started promoting off mysteriously, more than an hour before former U.S. President Donald Trump posted about a huge China tariff menace at 10:57 AM. Later in the day, at 4:30 PM, a large whale opened multi-million-dollar shorts, seemingly anticipating the approaching drop. Just 20 minutes later, Trump formally announced a 100% tariff on China, and this delivered the ultimate blow to bullish sentiment.
Timeline Of Events. Source: @KobeissiLetter on X
Trump’s tariff post dropped late on a Friday after US markets had closed, but the crypto market was broad open. As such, crypto costs fell into a vacuum as quantity spiked, creating the right setup for one of the quickest collapses in crypto historical past. By 5:20 PM, whole liquidations had reached $19.5 billion, and the whale closed positions for a $192 million revenue.
Despite the carnage, The Kobeissi Letter famous that this event was technical somewhat than basic. The crash is a essential reset that doesn’t have long-term implications. A commerce deal between the US and China would put an end to the uncertainty, and according to the crew, crypto stays strong.
Bitcoin Price Chart. Source: @KobeissiLetter on X
At the time of writing, Bitcoin has recovered a bit from its plunge and is now trading at $111,790.
Featured image from Unsplash, chart from TradingView
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