{"id":877211,"date":"2025-10-13T00:12:08","date_gmt":"2025-10-13T05:12:08","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/10\/13\/this-felt-different-why-fridays-crypto-crash-made-history\/"},"modified":"2025-10-13T00:12:08","modified_gmt":"2025-10-13T05:12:08","slug":"this-felt-different-why-fridays-crypto-crash-made-history","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/10\/13\/this-felt-different-why-fridays-crypto-crash-made-history\/","title":{"rendered":"\u2018This Felt Different\u2019: Why Friday\u2019s Crypto Crash Made History"},"content":{"rendered":"
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Features writer<\/p>\n

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Connor Sephton<\/p>\n

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Features writer<\/p>\n

\n Connor Sephton <\/span>\n <\/p>\n<\/p><\/div>\n

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About Author<\/p>\n

Connor Sephton is a journalist based in London, who also works for Sky News and the BBC as a radio newsreader and online reporter. He has covered crypto since 2018 \u2014 reporting from major conferences…<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n

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\n Fact Checked by<\/span>\n <\/p>\n

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Elena Bozhkova<\/p>\n

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Features Lead<\/p>\n

\n Elena Bozhkova <\/span>\n <\/p>\n<\/p><\/div>\n

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About Author<\/p>\n

Elena is the Features Lead at Cryptonews.com. With a Master’s degree in science journalism from City University, London, she is passionate about exploring complex topics in the world of technology.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n

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Last updated:\u00a0<\/p>\n

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It took eight years until Bitcoin<\/a> hit $20,000 for the first time. But on October 10, the world\u2019s biggest cryptocurrency dropped by $20,000 in a single day.<\/p>\n

Friday\u2019s crypto crash was nothing short of extraordinary. There\u2019s little doubt that the pullback was partially triggered by Donald Trump imposing a new 100% tariff on Chinese goods<\/a> \u2014 \u201cover and above\u201d any levy the country\u2019s already paying.<\/p>\n

Once again, the threat of an escalating trade war spooked markets, with the S&P 500 tumbling 2.7%. However, the impact across the crypto landscape was far more drastic, as the announcement coincided with low liquidity on Friday afternoons.<\/p>\n

BTC flash-crashed to lows of $104,500 \u2014 diving to $102,000 on some exchanges. ETH\u2019s decline was even more stomach-churning, with a peak-to-trough drop of 21% from $4,390 to $3,460.<\/p>\n

In dollar terms, this is now being regarded as the largest liquidation event in crypto\u2019s history: $19.36 billion in just 24 hours, according to Coinglass data. Long positions bore the brunt of this as traders chasing \u201cUptober\u201d were punished.<\/p>\n

The scars are still visible across altcoins too. Even though some assets have embarked on a slight rebound, many smaller cryptocurrencies are still nursing losses of more than 20%. And unsurprisingly, so-called \u201csynthetic dollars\u201d like USDe<\/a> also lost their peg \u2014 plummeting to 65 cents on the dollar at some stage. We haven\u2019t seen a correction like this in some time.<\/p>\n

Moonrock Capital\u2019s founder and managing partner Simon Dedic wrote on X that the pullback \u201cfelt very different\u201d from previous crashes \u2014 and dismissed the idea it could have been caused by Trump\u2019s tariff threats alone.<\/p>\n

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\u201cIt really feels like something went seriously wrong behind the scenes at Binance or a major market maker, triggering a one-of-a-kind liquidation cascade that wiped out liquidity across the board and sent some assets literally to zero.\u201d <\/p>\n<\/blockquote>\n

Dedic argued that the cause of this carnage \u201cwas a massive technical issue, not a fundamental one\u201d \u2014 indicating problems with infrastructure were to blame, rather than a sudden loss of conviction in the value of Bitcoin.<\/p>\n

Indeed, there\u2019s no shortage of those on Crypto Twitter who are absolutely furious with Binance<\/a> right now. Screenshots have emerged that show altcoin pairings with USDT plummeting by more than 90%. Those attempting to buy dips or panic sell faced agonizing delays, or were unable to complete their transactions.<\/p>\n

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Reports suggest there has also been a human cost to all of this. According to The Times of Ukraine, one influencer and entrepreneur shot himself in his Lamborghini \u2014 and had discussed financial stress in a video posted online. It serves as an important reminder to look after mental health during market turbulence, and never suffer in silence.<\/p>\n

As you might expect, on-chain sleuths are now suggesting that substantial whales exacerbated the crash \u2014 including an old wallet that allegedly made more than $200 million of profits in a single day by shorting BTC and ETH. And given Donald Trump\u2019s ties to the crypto sector are well documented, accusations of insider trading and market manipulation are now reverberating across social media. Those claims are unfounded, but it\u2019s pretty unfortunate and coincidental that the dump coincided with reports that the president is considering whether to pardon CZ<\/a>.<\/p>\n

Despite Friday\u2019s freefall, there are some who remain optimistic that this is just a temporary blip \u2014 a necessary purge of excess and greed before the markets advance higher as 2025 draws to a close. Some are calling for perspective given how Bitcoin has now returned to prices that were last seen at the end of September. Others insist that all of this drama hasn\u2019t ended the bull run, but reignited it.<\/p>\n

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Bitwise\u2019s senior investment strategist Juan Leon has shared an article he wrote last year, in which he argued that \u2014 historically at least \u2014 the best time to buy BTC is \u201cwhen there\u2019s blood in the streets.\u201d <\/p>\n

His research, which examined a 10-year period from January 2014 to August 2024, examined how major asset classes had performed one year after the S&P 500 had suffered a sudden pullback exceeding 2%. While this flagship index had typically rebounded by 23%, the data suggests BTC had usually jumped by a staggering 189%.<\/p>\n

Crypto investors are feeling battered, bruised and full of fear. Newcomers, who up until a few days ago were intrigued by BTC after it scaled to record highs, will be feeling cautious once again. This was a crash like no other, and it might take a while for the market to get its breath back again.<\/p>\n

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\n Margarete Michaud<\/p>\n","protected":false},"excerpt":{"rendered":"

Features writer Connor Sephton Features writer Connor Sephton About Author Connor Sephton is a journalist based in London, who also works for Sky News and the BBC as a radio newsreader and online reporter. He has covered crypto since 2018 \u2014 reporting from major conferences… Fact Checked by Elena Bozhkova Features Lead Elena Bozhkova About<\/p>\n","protected":false},"author":1,"featured_media":877212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2079,2599],"tags":[],"class_list":{"0":"post-877211","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-this","8":"category-different"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/877211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=877211"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/877211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/877212"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=877211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=877211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=877211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}