It's a big deal from the standpoint that tether stepped in, printed ~ a billion USDT over the past three days, and prevented further plunging. Someone should investigate that...
Reminder, if you're invested in crypto long term, you'd better say a prayer every night that Tether is actually backed by ~$180B of liquidity.
The wild moves occurred on alt coins, some went down 80%.
Mr. President's own World Liberty Financial for example went down from 18c to even 6c in an instant.
There was a flash crash down to ~$104K that wiped out leveraged traders. Liquidation cascades are relatively uncommon and the last one was in 2021 IIRC.
Yeah, the commotion is a bit silly. "The crash" basically brought the price of BTC to the level it was comfortably at two weeks ago.
I think disproportional media interest in last two weeks of appreciation and "the crash" is a failed attempt to finally kickstart this BTC bull or bear market. Somebody is getting impatient with last two years of steady growth.
The real story here is insider trading and corruption by people close to President Trump, who knew, down to the exact minute, when to short BTC and ETH.
BTC, meanwhile, being a scarce asset, will recover as fiat supply increases with time.
Yeah insider traders opening new accounts just over 1 day before, putting tens of millions into those accounts as shorts and stopping right before the president's announcement (to the second in some cases) meaning they walked away with hundreds of millions...
It's obvious, it's out in the open, and nobody will prosecute it.
Why does "orange guy doing random thing" cause Bitcoin to go down in value?
I mean, whatever the random thing was, it seems to have nothing whatever to do with Bitcoin.
Because Bitcoin is far, far more correlated with the stock market than the proponents want to admit. Notice that gold didn't budge, "digital gold" my ass.
When folks get scared, pure speculation instruments like BTC will tank.
As many assets are held by leveraged players their prices crash when it's difficult to secure future loans at the same price. This is why seemingly random things like central bank of Japan raising rates can cause double digit crash on Nasdaq.
There is nothing to worry about if you are happy to hold the assets long term. It's an opportunity if you have spare cash. It's only a problem for those leveraged players and people who need to sell right now for whatever reason.
1) there is a lot of circumstantial evidence of insider trading before the timing of presidential tariff announcement. further the accounts that traded on hyperliquid DEX were funded 24hours before even the first tweet by the president indicating fore-knowledge.
2) crypto exchanges have a feature called auto-deleveraging which closes long and short positions to 'preserve the solvency & integrity of exchange'. apparently this got kicked in when some of the thinly traded coins just didnt have a market maker & basically floor fell out of price.
3) looks like some screwup happened (likely intentional unknown atm) with the price reporting oracle between decentrralized exchanges like hyperliquid and Centralized exchange used (binance). people are claiming intentional sabotage by binance because they have a competing dex called aster. who knows.
4) leverage play, everybody was levered up because of up-tober expectations. so even small movements wiped out peoples saving.
There is a prevailing myth that crypto is somehow above or immune to governmental actions. Nothing could be further from the truth.
The US government could mostly destroy the crypto market tomorrow with a policy change. That's all it would take. If the US government came out and said to access SWIFT and the US financial system, any financial institution is not allowed to trade fiat currencies to or from crypto currencies then that's it, it's over.
The real problem with crypto is the biggest proponents of it simply do not understand the financial system. In fact they're almost the opposite: they're proud of their ignorance. They wear it like a badge of honor, like it lets them be a better disruptor. Sometimes, that's true. But for those of us with some understanding of the financial system, we just shake our head as the crypto market relearns the lessons already baked into the financial system.
Here's another myth: currencies were never backed by gold (or silver). The US Dollar has never been 100% backed by any metal. What really backs the US dollar is the US military. Yes, we previously had a soverign promise to exchange dollars for gold but that's just a promise. We saw under FDR how that promise can simply be changed when there was a sovereign currency devaluation.
At a logical level, Bitcoin should be decorrelated from stocks. The fundamentals of Bitcoin network adoption and utilization are largely separate and independent.
But, at an emotional level, Bitcoin is considered a high-risk asset. So, whenever fear gets heavy in the fear/greed equation, Bitcoin is one of the first places people pull money out of as they flee to safety. It's also the "High Risk-High Return" spot for folks to plunk their "spare change" when they are feeling safe. So, in practice short term moves in Bitcoin are highly correlated to short term moves in equities.
Meanwhile, if you actually run the numbers, Bitcoin has out performed the SP500 (or even the SP10) by a large multiple over the past decade while having a volatility usually around the median of the SP500-top-10 that everyone is currently betting heavily into. People just have a hard time getting out of linear thinking and so they look at the big dips as short-term linear disasters while on a long-term, logarithmic view they have been rather boring. https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2Fd...
> I mean, whatever the random thing was, it seems to have nothing whatever to do with Bitcoin.
I recently reviewed my investments and wrote about it on my blog, curiously around the time when US announced its tariffs around April, pretty much everything dropped, including crypto like BTC and ETH.
> In addition to the rationing system, the government provided food through soup kitchens in the cities. As the intensity of the famine increased, the reliance on soup kitchens increased. In April 1945, 1.8 million people in the cities were served daily. One pint of soup per person was the normal ration. The quality of the soup deteriorated over time and some people considered it inedible. The caloric content of a soup ration diminished from 483 calories to 268 calories. The soup served was often made from sugar beets, tulip bulbs, and potato peels. Pet dogs and cats were sometimes eaten.
Just give us a date/year/etc in which you think the value of bitcoin will go to zero
If you are unable to do that, then you implicitly agree, as pretty much everyone does now, that bitcoin has an intrinsic market value that will remain over an indefinite time horizon
"Miscommunication" is when you see mineral water on the bill when you thought it was tap water. Being that ignorant of the positions during a trade war that you started and doing it in public on Twitter is more like holding Uno cards face-out during your own game of poker.
> Amid the market's downturn on Friday, our view was that the 100% tariff announcement by Trump was a bargaining chip.
> After China's statement last night, we believe the odds of Trump's 100% tariff on China going into effect are extremely low.
"Does nothing, wins" is getting a bit out of hand: they're going back in time and winning 26 hours before they even start.
While it's fascinating to watch crypto bros learn exactly why the financial system is like it is, kinda like the kid eating baking chocolate, that's boring. It happens basically every day.
What's more interesting is how massive hte insider trader problem is already and it's only going to get worse. At some point it's going to undermine the financial markets themselves because nobody is going to trust it. Libertarians might get mad but financial markets, like all markets, require strong regulation to function.
A consequence of the presidential immunity decision is that Trump and his orbiters are allowed to insider trade with absolutely no repercussions. If somebody in his orbit does get in trouble, no problem. Just sell another pardon.
The US control and influence over the global financial system is a key pillar of its global power. As much as we might hear platitudes like "America First", this administration has done more to destroy the global power and influence of the US than any in living memory and it's not even close.
- Hackers likely exploited a Binance collateral loophole in its Unified Account system to trigger mass liquidations on October 11.
- Collateral assets USDE, wBETH, and BnSOL crashed sharply, wiping out traders and market makers as liquidation prices relied on Binance’s spot order book.
- The attack happened between Binance’s oracle update announcement and its implementation, suggesting precise timing and planning.
The article doesn't really explain what happened but a lot of the alt coins were bought with borrowed money. When Trump announced the latest 100% tariffs on China the selling caused a lot of alt coins to fall such that traders were stopped out and their coins sold which caused more drops some as much as 99% in a few minutes. Then things bounced back.
39 comments
[ 3.0 ms ] story [ 54.7 ms ] threadI don't really see the move Friday as a huge deal (in the scope of the Wild West crypto is), looks like business as usual.
Reminder, if you're invested in crypto long term, you'd better say a prayer every night that Tether is actually backed by ~$180B of liquidity.
I think disproportional media interest in last two weeks of appreciation and "the crash" is a failed attempt to finally kickstart this BTC bull or bear market. Somebody is getting impatient with last two years of steady growth.
The real story here is insider trading and corruption by people close to President Trump, who knew, down to the exact minute, when to short BTC and ETH.
BTC, meanwhile, being a scarce asset, will recover as fiat supply increases with time.
It's obvious, it's out in the open, and nobody will prosecute it.
The pump of ZCash also prove some like to clean their history (nowadays that Monero was attacked to crash Houthis international trades).
It's business as usual for those who know the business, many are newcomers.
When folks get scared, pure speculation instruments like BTC will tank.
There is nothing to worry about if you are happy to hold the assets long term. It's an opportunity if you have spare cash. It's only a problem for those leveraged players and people who need to sell right now for whatever reason.
1) there is a lot of circumstantial evidence of insider trading before the timing of presidential tariff announcement. further the accounts that traded on hyperliquid DEX were funded 24hours before even the first tweet by the president indicating fore-knowledge.
2) crypto exchanges have a feature called auto-deleveraging which closes long and short positions to 'preserve the solvency & integrity of exchange'. apparently this got kicked in when some of the thinly traded coins just didnt have a market maker & basically floor fell out of price.
3) looks like some screwup happened (likely intentional unknown atm) with the price reporting oracle between decentrralized exchanges like hyperliquid and Centralized exchange used (binance). people are claiming intentional sabotage by binance because they have a competing dex called aster. who knows.
4) leverage play, everybody was levered up because of up-tober expectations. so even small movements wiped out peoples saving.
The US government could mostly destroy the crypto market tomorrow with a policy change. That's all it would take. If the US government came out and said to access SWIFT and the US financial system, any financial institution is not allowed to trade fiat currencies to or from crypto currencies then that's it, it's over.
The real problem with crypto is the biggest proponents of it simply do not understand the financial system. In fact they're almost the opposite: they're proud of their ignorance. They wear it like a badge of honor, like it lets them be a better disruptor. Sometimes, that's true. But for those of us with some understanding of the financial system, we just shake our head as the crypto market relearns the lessons already baked into the financial system.
Here's another myth: currencies were never backed by gold (or silver). The US Dollar has never been 100% backed by any metal. What really backs the US dollar is the US military. Yes, we previously had a soverign promise to exchange dollars for gold but that's just a promise. We saw under FDR how that promise can simply be changed when there was a sovereign currency devaluation.
But, at an emotional level, Bitcoin is considered a high-risk asset. So, whenever fear gets heavy in the fear/greed equation, Bitcoin is one of the first places people pull money out of as they flee to safety. It's also the "High Risk-High Return" spot for folks to plunk their "spare change" when they are feeling safe. So, in practice short term moves in Bitcoin are highly correlated to short term moves in equities.
Meanwhile, if you actually run the numbers, Bitcoin has out performed the SP500 (or even the SP10) by a large multiple over the past decade while having a volatility usually around the median of the SP500-top-10 that everyone is currently betting heavily into. People just have a hard time getting out of linear thinking and so they look at the big dips as short-term linear disasters while on a long-term, logarithmic view they have been rather boring. https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2Fd...
I recently reviewed my investments and wrote about it on my blog, curiously around the time when US announced its tariffs around April, pretty much everything dropped, including crypto like BTC and ETH.
DOJ seizes $15 billion in bitcoin from 'pig butchering' scam based in Cambodia
https://www.cnbc.com/2025/10/14/bitcoin-doj-chen-zhi-pig-but...
> In addition to the rationing system, the government provided food through soup kitchens in the cities. As the intensity of the famine increased, the reliance on soup kitchens increased. In April 1945, 1.8 million people in the cities were served daily. One pint of soup per person was the normal ration. The quality of the soup deteriorated over time and some people considered it inedible. The caloric content of a soup ration diminished from 483 calories to 268 calories. The soup served was often made from sugar beets, tulip bulbs, and potato peels. Pet dogs and cats were sometimes eaten.
https://en.wikipedia.org/wiki/Hongerwinter
If you are unable to do that, then you implicitly agree, as pretty much everyone does now, that bitcoin has an intrinsic market value that will remain over an indefinite time horizon
A captain, back from a long voyage, therefore oblivious to the bulb bubble, received his payment served on a plate, then proceeded to eat it.
a13z's continued insistence that bits of data are in fact a "digital asset class" just slays me.
> Amid the market's downturn on Friday, our view was that the 100% tariff announcement by Trump was a bargaining chip.
> After China's statement last night, we believe the odds of Trump's 100% tariff on China going into effect are extremely low.
"Does nothing, wins" is getting a bit out of hand: they're going back in time and winning 26 hours before they even start.
If you see BTC rising faster when you look at its price in dollars you don't see the appreciation of BTC. You see the decline of the dollar.
What's more interesting is how massive hte insider trader problem is already and it's only going to get worse. At some point it's going to undermine the financial markets themselves because nobody is going to trust it. Libertarians might get mad but financial markets, like all markets, require strong regulation to function.
A consequence of the presidential immunity decision is that Trump and his orbiters are allowed to insider trade with absolutely no repercussions. If somebody in his orbit does get in trouble, no problem. Just sell another pardon.
The US control and influence over the global financial system is a key pillar of its global power. As much as we might hear platitudes like "America First", this administration has done more to destroy the global power and influence of the US than any in living memory and it's not even close.
https://x.com/eyeonchains/status/1977071983172231507
They made nearly US $200M profit. Someone in the Trump admin is cashing in, and it's not the first time this has happened.