Trump crypto crash: What started as another volatile day in the markets quickly turned into one of the biggest crypto crashes in history and it all seemed to unfold according to plan, as per a report.
Two days before US president Donald Trump’s Truth Social post, one of Bitcoin’s oldest wallets suddenly became active. It began opening large short positions on Bitcoin and Ethereum worth billions, as per a Bull Theory report. There was no obvious reason, no news, no market chatter, just quiet, calculated moves onchain.
Then came Trump’s post, where he warned that China would face massive tariffs, hinting at an escalation in trade tensions, as per the report. Markets reacted with a small dip and some volatility, but nothing serious at that time.
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Hours later, the real shock hit, when from the White House podium, Trump announced 100% tariffs on all Chinese imports starting November 1, as per the Bull Theory report. The market had not priced in anything close to that.
Within minutes, chaos followed, the S&P 500 fell over 2 percent, its sharpest single-day drop since April, reported Bull Theory. Bitcoin plunged to $102,000, wiping out weeks of gains. Altcoins collapsed, many losing between 70 and 90 percent in a matter of minutes, as per the report.
Around $20 to $22 billion in leveraged positions were liquidated, with real exposure likely closer to $40 to $50 billion, as per the Bull Theory report. In less than three hours, nearly $1 trillion in crypto market cap disappeared, according to Bull Theory.
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But that wasn’t the strangest part, it began just 30 minutes before Trump’s official announcement, the same whale doubled their short exposure, as reported by Bull Theory. When the crash came, they closed their positions for an estimated $200 million profit, according to the report. The timing was too perfect to ignore.
It didn’t look like retail panic. It felt structural, as if a major fund or trading desk had been forced to unwind everything at once, according to the report. Every exchange saw cascading liquidations. Even USDE depegged by 35 percent to 40 percent, as reported by Bull Theory.
But in the bigger picture, moments like this have happened before. Every bull market has a sudden, violent purge that clears out weak hands. March 2020 had it. Mid-2023 had it. Now October 2025 has its own.
Now, leverage has been wiped out. Shorts are overextended. Strong hands are quietly buying from panic sellers. Trump’s tariff threat may have triggered the drop, but what follows next could define the next phase of the market
Bull Theory wrote on social media X, “The market just flushed out months of excess in one move. And when the dust settles, this becomes the base for the next expansion phase. So yes, the headlines scream Market Crash. But zoom out the structure didn’t break. It just reset. The whales already took their entry. Retail panic is peaking. And history says, that’s exactly when the next leg begins.”
What caused the crypto crash?
The crash was triggered by Trump’s announcement of 100% tariffs on Chinese imports starting November 1.
What happened to Bitcoin’s price during the crash?
Bitcoin plunged to around $102,000, erasing weeks of gains.
