Largest Crypto Crash: Markets Plunged, ~$19B Liquidated

TL; DR (Quick Facts)

• Trigger: A sudden escalation in U.S.–China trade measures (announced tariffs and export controls) spooked global markets and triggered a rapid risk-off move, leading to a sharp crypto crash. The Guardian
• Liquidations: Roughly $19 billion in leveraged crypto positions were liquidated within ~24 hours, with reports of > $7 billion wiped out inside a single hour during the worst crypto crash. CoinDesk
• Prices: Bitcoin briefly plunged into the low $100k range (lows reported around $102k–$105k on some exchanges); Ethereum saw a deeper peak-to-trough move (from about $4.39k to lows near $3.46k on some venues). Reuters
• Trader impact: Approximately 1.6 million traders were liquidated according to liquidation trackers. Cointribune

What Actually Triggered the Crypto Crash

Last night’s crash was not caused by a single crypto-native event (hack, protocol bug, or exchange insolvency). Instead, it began as a macro-geopolitical shock:

• News that the U.S. announced sharply higher tariffs and new export restrictions on certain tech/rare-earth related goods (and related rhetoric around trade escalation) hit markets. Equities and tech names tumbled in tandem, and risk assets—including crypto—repriced swiftly. The Guardian
• Crypto markets are highly leveraged: many participants use margin and perpetual futures. When price moves trigger margin calls, forced liquidations accelerate the sell pressure — a feedback loop known as a liquidation cascade. That cascade amplified the initial macro shock into an historic crypto liquidation event. CoinDesk

How Big was the Hit? — Liquidation Tracker Snapshot

Different trackers use different windows and exchange coverage, but the numbers below show the scale (24-hour period around Oct 10):

Tracker / Source	Reported liquidations (≈24h)	Notes / highlight
CoinGlass / Coinglass	$19.1B (≈$19.13B)	CoinGlass reported ~1.6M traders liquidated; said most of the pain hit long positions. CoinDesk
TradingView / Moneycontrol (summary)	$19.13B	Summarized CoinGlass figures and noted >$7B in one hour. TradingView
Press aggregators (Decrypt / CCN / EconTimes)	~$19B	Independent outlets corroborated the ~$19B figure while noting slight methodology differences. Decrypt
CoinDesk (context)	Reported ~$16B in longs wiped out (partial snapshot)	CoinDesk highlighted that long positions took the bulk of the damage; CoinGlass cautioned actual totals may be higher due to delayed reporting from some exchanges. CoinDesk

Bottom line: ~$19 billion is the widely quoted figure for 24-hour liquidations — the largest single-day liquidation event on record by multiple trackers and news outlets. CoinDesk

How Prices Moved (What you’ll see on the Charts)

• Bitcoin (BTC): Intraday swing from recent highs above ~$125k into a flash drop near $102k–$105k on some venues before partial recovery. That spike lower was brief but severe and produced outsized liquidations because many traders were highly leveraged. Twelve Data
  
• Ethereum (ETH): Moved from highs near ~$4.39k down to ~$3.46k on some exchanges — a peak-to-trough move that in percent terms exceeded Bitcoin’s drop. Investing.com

Use the interactive charts above and zoom into Oct 10 to inspect minute-level candles and the exact flash-drop timestamps on your exchange of choice.

Why This Felt Worse Than Previous Crashes

1. Macro shock origin: When a non-crypto macro/geopolitical surprise hits (trade wars, tariffs, bank runs), it hits a much wider pool of leveraged risk capital simultaneously. That makes liquidations much larger than crypto-only events. Barron’s
2. High leverage environment: After a strong run earlier in October, many traders were leveraged long (chasing gains). That profile made the market vulnerable to a fast unwind. Decrypt
3. Fragmented exchange liquidity: Not all venues report liquidations in real time; some show deeper flash lows — those localized exchanges feed headline numbers and force larger forced sells on margin books. CoinDesk

What to do Next

I’m not your financial advisor. This is general guidance for risk-management and clarity after a shock.

1. Pause and don’t panic-trade. Fast market moves tempt emotional trading (averaging down aggressively, margin top-ups). Step back and assess your exposure calmly.
2. Check your leverage & positions now. If you use margin/perpetuals, log in and note maintenance margin levels and liquidation prices. Reduce leverage if you’re exposed.
3. Rebalance to a plan. If you have a written allocation or risk plan, compare positions against it. This is a good time to rebalance toward your target weights rather than chasing rebounds.
4. Consider staggered reentry (if you’re buying). If you plan to buy into weakness, use dollar-cost averaging or limit orders — don’t attempt to catch the exact bottom.
5. Protect profits & limit downside. For spot holdings you want to keep, consider trailing stops or defined sell rules; for tax-savvy investors, tax-loss harvesting may be appropriate. Consult a tax pro.
6. Use reliable exchange/safe custody for long-term holdings. If you hold assets long-term, move significant funds off exchanges into custody you control (hardware wallets / cold storage).
7. Monitor macro newsflow. This crash was macro-driven; future moves may be linked to trade/diplomatic developments — keep an eye on Reuters / major news wires. Reuters
8. Analysts warn of a slow, multi-step recovery — not a quick rebound. The crypto market is still shaking off the biggest wipeout of its entire history.

Final Perspective

Market shocks like this are terrifying in the moment — forced liquidations create drama — but they also reveal structural truths: crypto still responds strongly to macro risk and is vulnerable where leverage is high. For long-term investors, the event is a reminder to control leverage, hold a plan, and use slow, disciplined execution rather than emotional reaction.