What We Know and What’s Next

Liquidations have reached the ceiling, and prices are collapsing, and this is what we know so far.

The events that have occurred in the past day or so are not unusual in the ever-volatile cryptocurrency market, but they tend to hurt some traders more than others. While many felt the pain of liquidation, others seemed to benefit.

In just 12 hours or so, the entire market went from a market cap of $4.120 trillion on TradingView to $3.3 trillion, meaning nearly $900 billion was wiped out. That pushed the measure to its lowest levels since July, erasing months of gains, before recovering to $3.670 trillion as of press time.

What we know

Whenever such crashes occur, the cryptocurrency community is quick to offer different viewpoints on the matter, trying to explain what happened and offering some ideas about what might follow. The matter is no different from the current collapse, as Crypto become The largest liquidation event in the digital asset market.

The most widely cited reason is, surprise, surprise, US President Donald Trump. In what seemed like déjà vu, the President of the United States The alleged one China bluffed in some areas and threatened to impose a new set of tariffs on Friday, sparking the first wave of market-wide declines. He officially announced this a few hours later, confirming that these tariffs would begin on November 1.

However, Kobeci’s letter noted that the markets were “looking” for a good reason to correct, given the huge amount of leverage, especially in cryptocurrencies.

Stark reality:

With President Trump’s announcement of 100% Chinese tariffs looming, markets were looking for a catalyst to pull back.

Leverage was very high and we did not see a 2%+ decline in the S&P 500 for 6 months.

President Trump’s post became the reason behind…

– Al Qubaisi Letter (@KobeissiLetter) October 11, 2025

Taurus theory The alleged one One of the oldest Bitcoin wallets may have known what was about to happen when it opened large short positions on Bitcoin and Ethereum a day before the announcement and doubled as the events unfolded. They closed all their short trades with a profit of nearly $200 million in just one day.

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Bull Theory added that this was not a retail-driven landfill, as it had been on some occasions in the past. Instead, they noted, “it looked structural, as if a fund or desk had been forced to unwind its positions all at once.”

What’s next?

Naturally, after trying to explain what happened, the next step is to make a prediction of what is to come. The majority of the cryptocurrency community seems adamant that this is the right moment to buy, as similar incidents are usually followed by significant moves in the opposite direction.

“So, yes, the headlines are screaming market collapse. But the structure isn’t broken. It’s just reset. The whales are already in. The retail panic has peaked. And history says, that’s exactly when the next phase begins,” Paul Theory said.

CZ agreed, noting that this could be the next “coronavirus crash,” when Bitcoin fell to $4,000 but rose sharply in the following months.

👇 https://t.co/4O6i3MsfIA

— Czechoslovakia 🔶 BNB (@cz_binance) October 11, 2025

However, crypto bully shown Different predictions, which will be much more painful if Trump continues to impose tariffs:

“Unless Trump immediately changes his statements on Monday, this will not be a V-shaped reversal. Most alternatives with 50-70% wicks will bleed and fill or partially fill before the reversal.”

A different perspective

While most focus on falling prices, forward-thinking, and behavior, COPI Highlight A different perspective on the situation. Popular X User believes such crashes are a perfect example of why investors should avoid taking leveraged positions, as they could erase years of gains.

Instead, they should focus on building a long-term portfolio by only holding assets they support and believe in. This means staying away from speculative tokens that only chase hype without any real benefit.

“When everyone is making ridiculous amounts of money, I’m always tempted to start using leverage again. It’s almost impossible to fight the feeling that you’re not making enough, or that everyone is outpacing you. A good reminder that fighting that feeling and avoiding getting wiped out is worth it in the end. Don’t let leverage inflation dictate your long-term views. The future is bright, good things are coming, be patient “Rewarded.”