What happened on October 10, 2025, in the crypto market? On October 10, 2025, the cryptocurrency market faced a significant downturn as former President Donald Trump announced plans to implement a 100% tariff on imports from China. This unexpected announcement triggered a massive sell order on a major exchange, resulting in a flash crash that wiped out billions of dollars in margin positions.
In just a short period, Bitcoin saw a decline of over 10%, Ethereum fell below the $3,500 mark, and other altcoins like Solana and Dogecoin experienced even steeper drops. It was estimated that more than $7 billion in positions vanished within an hour, affecting approximately 1.6 million traders who found themselves caught in the turmoil.
Was there an opportunity amidst the chaos? Despite the market's steep decline, crypto gambling platforms reported a surge in traffic. Many users turned to these sites, attempting to navigate the aftermath of the sell-off through gambling. Particularly, Shiba Inu online casinos gained attention, with retail traders viewing the crash as an opportunity to acquire tokens at a low price. Their strategy involved buying low, staking tokens on gambling platforms, and anticipating future price recoveries and staking rewards. This method carries considerable risk and may feel more like gaming than investing, yet it reflects the playful approach that influences many within the meme coin domain.
How did the tariff announcement impact global markets? The sudden nature of Trump’s announcement left many traders in a state of uncertainty, raising questions about its implications for supply chains and consumer prices worldwide. Given an atmosphere already fraught with concerns about interest rate hikes and geopolitical tensions, this announcement marked what some viewed as the tipping point, particularly as it pointed towards a significant tariff commitment set to start on November 1.
What were the effects of record-setting liquidations? Approximately 1.6 million accounts faced forced closures of margin trades, predominantly driven by leveraged positions on cryptocurrencies like Bitcoin and Ethereum. The open interest in the market plummeted by nearly $19 billion, corresponding to the largest single-day liquidation in recorded history. Currently, over 560 million individuals own cryptocurrency globally; however, the relatively modest capital pool in this market means that a wave of liquidations can quickly drain liquidity. Many experienced traders note that the market is often thinly traded, with a significant portion of positions in leverage, causing heightened sensitivity to price movements.
What is happening with meme coins post-crash? Meme coins such as Shiba Inu are particularly vulnerable to dramatic price changes, largely depending on social media attention rather than fundamental value. Following the crash, Shiba Inu saw its value drop by over 50% before recovering partially. While this volatility may appeal to some, seasoned traders advise caution against risking essential funds on tokens that can fluctuate drastically in value.
Although major cryptocurrencies showed some recovery as the weekend approached, these rallies did little to assuage the concerns of traders. Until there is more clarity on trade policy, market participants are advised to maintain tight stop-loss orders and shorter investment timelines, adapting strategies in a rapidly shifting landscape. Some analysts argue that the recent sell-off was overdue given the prior price rises throughout the year, while others anticipate that as crypto adoption grows, price fluctuations may become less extreme over time. This week’s volatility starkly highlights that the cryptocurrency market is still in its infancy, with significant growing pains ahead, illustrating that political developments and trading sentiment can lead to unexpected market reactions.