A Day That Shocked the Crypto World
On October 10, 2025, the cryptocurrency market suffered one of the most violent crashes in its history. Bitcoin plunged more than 10%, breaking below $110,000, while leading altcoins like Ethereum, Solana, XRP, and PEPE collapsed between 15% and 70% within hours.
Over $19 billion in leveraged positions were liquidated across exchanges, the largest single-day wipeout ever recorded. But what truly made this event historic was that every single long position across altcoins was completely liquidated.
From meme tokens like PEPE and DOGE to institutional favorites such as XRP and AVAX, no leveraged long position survived. Exchanges including Binance, OKX, and Bybit faced a chain reaction of forced liquidations, erasing billions in open interest within minutes. On-chain data confirmed that by the end of the day, altcoin long exposure had effectively dropped to zero, leaving only spot and short traders active in the market.
Why Did It Happen?
Trump’s Tariffs Shock the Global Markets
The initial trigger came when U.S. President Donald Trump announced a 100% tariff on Chinese tech imports, rattling global markets. Equities, commodities, and crypto all reacted sharply as investors rushed to reduce risk exposure.
Crypto, as a high-volatility and high-leverage asset class, became the first victim of the panic.
Panic Selling and Total Long Liquidations
As Bitcoin broke below major support levels, liquidation engines began to cascade. Automated sell-offs swept through altcoin markets, where leverage levels were already dangerously high. Within hours, the entire altcoin long market was forcibly closed.
- PEPE/USD collapsed over 60%, with trading volumes spiking to 905 million units, as seen in the chart below:
- XRP/USD fell from $2.8 to $1.4, a 50% drop, with over 8 billion XRP traded during the liquidation wave:
These examples illustrate how extreme leverage amplifies losses and transforms small dips into catastrophic market collapses.
Exchange Volatility and Potential Manipulation
During the chaos, exchanges experienced system overloads and price oracle delays, leading to further mispriced liquidations. Some analysts pointed to coordinated liquidity drains by large players (“whales”), who may have exploited thin order books to trigger margin calls.
The Bigger Picture
The October 10 crash revealed a deep structural vulnerability within the crypto ecosystem, over-leverage and herd mentality. While Bitcoin demonstrated relative resilience due to stronger liquidity, the altcoin market was decimated, exposing how fragile it remains under stress.
Yet, paradoxically, the event also reset the market. With excessive leverage wiped out, only disciplined spot investors and institutional participants remained, creating the conditions for a healthier, more stable recovery.
Key Lessons for Traders
- Never underestimate liquidation risk. Leverage magnifies profits, but it can erase your portfolio in seconds.
- Diversify beyond altcoins. Bitcoin’s liquidity and market depth offer greater stability during crises.
- Avoid excessive leverage. Even minor dips can trigger forced liquidation cascades.
- Stick to fundamentals. Crashes cleanse the market of speculation and reward patient, value-driven investors.
The Aftermath
The October 10, 2025 crash will be remembered as the day every altcoin long was wiped out. It exposed systemic weaknesses in trading behavior, exchange infrastructure, and collective psychology.
But it also marked a turning point, a return to fundamentals, discipline, and risk awareness.
At Crypto OGs, we believe this crash will be seen in hindsight as the beginning of a new cycle: one built on resilience, long-term conviction, and a renewed respect for risk.
Stay informed. Stay humble. Remember, the market always tests conviction before it rewards it.
News Highlights
Record-Breaking $19 Billion in Liquidations
The crypto market experienced the largest liquidation event in history, with over $19 billion wiped out from leveraged positions in just one day.
Trump’s 100% China Tariff Announcement Triggers Panic
A surprise statement from U.S. President Donald Trump proposing a 100% tariff on Chinese tech imports sent shockwaves through global markets, sparking a massive sell-off in crypto.
Bitcoin and Ethereum Lead the Decline
Bitcoin plunged over 14%, dropping below $110,000, while Ethereum fell by around 12% during the worst part of the crash.
Altcoins Suffer Even Deeper Losses
Many altcoins were hit harder than major assets, with some — like AVAX and DOGE — losing 50% to 70% of their value before rebounding slightly.
$16 Billion in Long Positions Wiped Out
The majority of the liquidations came from overleveraged long positions, as cascading margin calls and stop-losses accelerated the fall.
Stablecoins and Synthetic Tokens Lose Their Pegs
Several stablecoins and synthetic assets, including USDE, WBETH, and BNSOL, temporarily lost their pegs, trading far below expected value during peak volatility.
Binance Deploys $188 Million from Its Insurance Fund
Binance used $188 million from its futures insurance fund to cover user losses and stabilize the platform during the extreme sell-off.
Ethereum Funds See Major Outflows
Institutional ETH funds recorded $175 million in outflows, while Bitcoin funds saw smaller redemptions, showing a shift toward risk aversion.
Oracle Networks Struggle Under Market Stress
Centralized oracle systems, such as Chainlink and Pyth, faced disruptions as price feeds failed to keep up with real-time volatility across exchanges.
Tragic News: Ukrainian Trader Found Dead Amid Market Collapse
Ukrainian crypto trader Konstantin Galich (alias Kostya Kudo) was found dead in his Lamborghini in Kyiv on October 11, coinciding with the crash, a story that sent shockwaves through the trading community.
