If you’re wondering “what’s happening to crypto”, here’s the updated situation: a mix of geopolitical tensions (especially between the USA and China), aggressive political decisions, and chain reactions in the markets has triggered a rapid and deep crash.
In recent days, the cryptocurrency market has been shaken by a wave of sales, liquidations, and financial panic.
The main causes of the crypto crash: the news
1. Trump unleashes 100% tariffs against China
One of the triggering events was the recent statement by former President Trump: he announced the imposition of 100% tariffs on certain Chinese exports and controls on the export of critical software, as retaliation for Chinese restrictions on rare earth exports.
This escalation has triggered panic in global markets, with immediate repercussions also in the crypto world.
2. Record Liquidations and Ripple Effects
During the night of the crash (October 10-11), there were liquidations on leveraged positions amounting to over 19 billion dollars, according to estimates released by various industry operators.
Many traders had “long” positions that were automatically closed (margin call), triggering forced sales that amplified the negative movement.
3. Domino effect: collapse of technical supports
After the initial liquidations, Bitcoin and Ethereum fell below key support levels, attracting more sellers and lowering market confidence.
In many cases, the “minor” cryptocurrencies (altcoins) experienced even more significant losses, sometimes ranging from 40-70%.
4. Geopolitics, uncertainty, and global “risk-off”
The increase in tensions between the United States and China, uncertainties in the stock markets, and nervousness about financial instruments have led investors to seek refuge in less volatile assets, abandoning high-risk cryptocurrencies.
What Happened “On the Ground” (Data and Reactions)
Price Trend
- Bitcoin has dropped significantly, reaching values below 104-107 thousand dollars at its worst moments.
- Ethereum has also fallen, losing many percentage points compared to recent highs.
- Some altcoins like XRP, Solana, ADA have suffered even greater losses.
Reactions and Rebounds
After the initial crash, there was a partial rebound in the following days because Trump softened his tone regarding tariffs and clarified that 100% tariffs “would not hold up”.
However, the recovery was weak and many traders interpret it as a “technical rebound” rather than a clear trend reversal.
Surprising Data
- In the most acute moments, some institutions like BlackRock, Binance, and Coinbase sold large quantities of Bitcoin within a few hours, contributing to the selling pressure.
- The derivatives and options sector has seen a boom in demand for “put” instruments (i.e., protections against downturns) after the crash.
- The authority of the Federal Reserve and government officials have reiterated their focus on the risks of crypto markets, particularly those related to stablecoins.
- A related tragic fact: the well-known Ukrainian crypto influencer Konstantin Galich was found dead in a Lamborghini in Ukraine, with the press linking the death to severe emotional stress due to the market crash.
Analysis and Prospects
Was it a simple “flash crash” or something more structural?
Many analysts speak of “brutal deleveraging”: the excess leverage in portfolios has made the system vulnerable to external shocks.
This event could represent a “cleansing” of the market: those who used excessive leverage have been forced to exit, leaving room for more cautious operators.
Risks Still Present
- Volatility remains very high: it is not certain that the market has already hit the bottom.
- Geopolitical tensions between the USA and China may resurface.
- The regulatory framework remains uncertain: new crypto regulations could cool the market.
- The connection of crypto with global markets makes them susceptible to macro dynamics (rates, inflation, banking crises).
Possible scenarios
- Moderate recovery if Chinese tensions ease and investors regain confidence.
- Lateral stagnation with strong fluctuations, without significant direction.
- New decline, if new shocks emerge (political, regulatory, macroeconomic).
What we can say today
If you’re wondering “what’s happening to crypto this week”, the answer is that we are in a phase of strong risk awakening: a mix of leverage, geopolitical tensions, and chain reactions in the markets has triggered a partial collapse of the crypto market.
This event highlights some critical points:
- Cryptocurrencies are not immune to global dynamics and macro shocks
- Excessive use of leverage exposes to systemic risks
The crypto market remains fragile in the absence of rules and stability