Yesterday, a big whale started shorting Bitcoin and Ethereum, and kept shorting exactly up to one minute before Trump’s post on China’s tariff. They turned around and started closing the position 30 minutes later, that is after BTC dropped by 10 K, the net profit is $190 M. In the decentralized exchange, there is no way you can hide the person who did these transactions… they know that these trades can be traced to a specific wallet/ account, but they didn’t care…
The nation is outraged that someone mentioned in their mortgage application a secondary house as primary house and saved couple of hundred dollars a month.
More than equity market move, on ‘crypto’ world, especially on the altcoin side a bigger wipeout has occurred. Traders have collectively lost few billion $$$, news of suicide are emerging. People who owned 100’s of millions in profits got wiped…
Anyone trading on margin, even put sellers, need to have risk mitigation in place or severely reduce exposure.
The crypto wipeout is a bigger event that is not widely covered. If you see Bitcoin is down 17% (20% peak), but ETH is down 27% (30% peak). Of course Crypto has seen these kind of strong drawdowns’ and bounce back.
Key takeaways:
• Leverage is cleaner, but liquidity gaps remain.
•Capital is rotating, not entering—selectivity remains critical.
• Macro risk lingers, but structural demand builds.
From coinbase monthly outlook..
The tariff-induced crypto liquidation cascade on October 10—which drove many altcoins down by 40~70%—bears an uncanny resemblance to the informational dynamics at play in that event (Great Grain Robbery). In both episodes, asymmetric information during periods of thin liquidity created massive market dislocations that punished less liquid, higher-beta assets disproportionately.
