Valuable lessons to be learned from this.
What the fuck happened?
I’ve seen crypto crashes over the past eight years, but this drop was unlike any other we’ve seen, literally.
Friday, October 10, 2025, now sets the record for the largest intraday drop across the broader crypto market.
What triggered this? Another announcement regardings one of Trump’s tariffs.
Trump makes his umpteenth announcement about a tariff, and the crypto market completely loses it once again.
Mind you, it was no ordinary tariff announcement. According to an excerpt from his original post on Truth Social:
“Starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying.”
I am unable to embed the original post. I don’t have Truth Social, and it won’t let me view it unless I’ve signed in (at least from my experience). Here is an Instagram link to the post; no sign-in required.
With tens of billions of dollars in leverage trading across the market, which was sitting at $4.15 trillion, the crash set off a chain reaction with shorts getting liquidated left, right and centre.
Much of this would be done with no or low stop losses, causing altcoins to be severely affected.
I regrettably didn’t take a screenshot on Crypto Bubbles, but when I woke up yesterday morning, about early evening on Friday, Eastern Daylight Time (EDT) in New York, most altcoins were down about 60-80% in a matter of hours.
My first thought was to rush to my computer and snap up these ridiculous bargains, especially for blue-chip altcoins. In the end, nothing was spared except for OriginTrail (TRAC) and a few other lesser-known crypto assets.
Coinbase and Kraken were understandably experiencing issues with processing trades, so I managed to put through a couple of tiny ones and briefly take advantage of the dip.
In hindsight, I should have also considered going via Ethereum and Solana DEXes, but I was in a rush and had an eventful day ahead of me.
Even if I managed to get through, from my experience accessing DEXes during high market volatility or periods of a memecoin mania, e.g., TRUMP and MELANIA token launches in January, it was impossible to process transactions, due to network congestion and ridiculous slippage, i.e., the % difference between the expected and actual prices when doing a trade.
Considering that yesterday’s situation was more drastic and widespread, it would have been almost impossible for most retail investors to process trades amid the chaos, even if you set an excessive slippage rate above 6% to account for wild fluctuations.
The longer you’re in this market, the more likely it is that you’ll become a Bitcoin believer, dare I say, maxi, just by default.
Bitcoin’s incredible resilience
Even though BTC dumped, it managed to recover and stay around $110,000, and is still holding this key (resistance) level.
A 10% drop in Bitcoin is nothing to scoff at. This still equates to about $225 billion wiped out in a matter of hours. Including altcoins, half a trillion dollars was erased from the market. It was absolutely brutal.
If the flagship crypto manages to hold and close this week at $110,000 and gradually recovers, the bullish trend still stands, albeit significantly weakened. It might take longer than usual to bounce back as this event will have spooked many traders and investors, particularly noobs.
For medium-to long-term holders, it also resets the Bitcoin Fear & Greed Index. It has now plummeted to 24 (approaching Extreme Fear), completely reversing from being at 74 a week ago.
Bitcoin Fear & Greed Index. Source: Alternative.me
Don’t forget that BTC is still up 76% over the past year and is still outperforming golddespite its impressive performance in recent months.
So, how much Bitcoin is weathering the storm relatively unscathed? Two main reasons include:
– A significantly higher market cap than altcoins allows BTC to absorb abrupt market dips much better than other digital assets.
– We’ve seen a major influx of institutional investors, such as Bitcoin treasury companies and spot ETF providers, that are much more likely to base decisions on facts rather than emotions. This applies to Ethereum, but to a lesser extent, as witnessed by the price drops across the board.
Additional thoughts
If you’ve made it through the FTX, 3AC, Celsius, and other collapses, COVID-19 market drops, previous bear markets, unfavourable regulatory periods, repeated and profound flush-outs, and any other negative periods in this space, words cannot describe your mental fortitude.
Remember, if nothing is fundamentally wrong with Bitcoin’s network, there isn’t a fully-fledged world war underway (at least not kinetic warfare) or a complete collapse of the U.S. economy (mind you, the growing national debt relative to GDP is making people increasingly on edge), then there’s little to worry about.
This is what has gotten me through several bull and bear cycles over the years.
Moreover, with events like this one just happened, it is also why, unless you really know what you’re doing, you shouldn’t touch leverage/margin trading. I suggest sticking to spot trading, where you fully own the asset regardless of how low it goes. Crypto is risky enough as it is.
Part of me still has PTSD after seeing my leverage trading gains completely evaporate when I was still a rookie in 2017. I am sure many of you have been in a similar boat.
If you’re currently experiencing this, I recommend stepping away from this space for at least a few days to clear your mind. Trying to claw back steep losses straight after a brutal drop rarely works.
When in doubt, zoom out. Keep calm, carry on and stay strong, folks.
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You might also be interested in these stories:
https://medium.com/@cryptowithlorenzo/bitcoin-is-going-to-zero-5562122f5481
https://cryptowithlorenzo.medium.com/five-crypto-sectors-with-the-most-potential-in-2025-f1fe085564c8
Disclaimers
• N.B. None of this is financial advice; I am not a financial advisor. You are ultimately responsible for your investments.
- My opinions in this piece may not reflect those of any news outlet, person, organisation, or other entity listed here.
- Please do your due diligence before investing in any crypto assets, staking, NFTs, or other products associated with this space.
• Information is correct at the time of writing.
Link to the original post.
https://truthsocial.com/%40realDonaldTrump/posts/115287691323395767
