Crypto’s $19B cleanup looked complete until… – Here’s what you should know!

Key Takeaways

Why did crypto markets crash?

Ah, the thrill of a surprise 100% tariff announcement by none other than President Trump, which sent crypto markets tumbling like a drunken man at a wedding. Over $19 billion vanished in an instant, marking the largest leveraged wipeout in crypto history. If you missed it, well, better luck next time! 🎉

Has Bitcoin hit the true market bottom?

Not quite. The investors, bless their hearts, are still making a profit. So, the full capitulation and emotional reset? Still waiting. Get your popcorn, folks 🍿.

On October 10th and 11th, crypto markets experienced an epic wipeout-over $19 billion in liquidations, like a bad day at the office after too many coffee breaks. This disaster followed a surprise tariff announcement from President Trump and a perfectly-timed short by a crypto whale, who must have been feeling a bit too confident.

The crash erased weeks of speculative gains in both Bitcoin [BTC] and altcoins. Now, the community is left with one question: Did the market finally shake off the excess leverage, or is there more doom to come? Stay tuned…

The $19 billion domino effect

In under 24 hours, the markets were pummeled by a liquidation cascade that wiped out over $19 billion in leveraged positions. More than 1.6 million traders? Poof, gone-like your last slice of pizza at a party. 🍕

What was the cause of this drama? A sudden 100% tariff announcement from Trump, timed just perfectly with a major crypto whale opening massive short positions. This wasn’t a coincidence, my dear friends. 🎯

According to The Kobeissi Letter, within 30 minutes of the announcement, liquidations soared past $19.5 billion. Over $16.7 billion of that was from overleveraged longs. One platform, Hyperliquid [HYPE], alone saw more than $10 billion in long positions flushed away like your best intentions on a Monday morning.

The crash revealed how weekend liquidity and a hefty dose of investor greed left the market fragile. One surprise, and bam-crypto history was rewritten. It’s almost like watching a soap opera unfold in real time… without the commercials. 🎭

A market purge, but not yet a bottom

The $19 billion liquidation cleaned out excessive leverage, but the true emotional reset? Not so much. You see, reports show the Net Unrealized Profit/Loss (NUPL) was around 0.51-meaning most investors are still sitting pretty in profit despite the chaos. Those poor souls haven’t fully surrendered yet. 😅

The crash was swift, mechanical-more panic than a true sense of loss. The market’s emotional collapse was nowhere near as dramatic as a soap opera cliffhanger. Maybe next time. 🤷‍♂️

But, bless their hearts, exchanges like Binance played the role of the calming presence amidst the storm, stabilizing the markets with some much-needed liquidity. Whale moves and inflows surged just before the crash, almost as if someone knew the chaos was coming and decided to embrace it like a true professional. 💼

In the end, we saw a cleaner market structure, but without the emotional washout that usually signals a true bottom. Looks like the reset button is still waiting for its moment. ⏳

The calm before the true reset

Despite the historic $19 billion liquidation, Bitcoin may not have hit its true bottom just yet. In past bear markets, like March 2020 and November 2022, the NUPL dropped below zero, signaling the pain of capitulation. But this time? It’s still hanging around 0.5. So, many traders are still in the green. Lucky them, right? 🤑

That optimistic glow often precedes another drop-because, let’s face it, fear hasn’t fully sunk in yet. Leverage might be cleared out, but sentiment? Still hanging on like a stubborn stain. The true recovery might not come until panic deepens, and the NUPL heads south. 🍂

So, folks, don’t put your champagne glasses down just yet. The real rollercoaster might be just around the corner. 🎢

2025-10-12 19:13