# Crypto crash: What happened?!

By [Mkay](https://paragraph.com/@mkay) · 2025-10-10

---

October 10, 2025 - By [Mkay](https://x.com/MkaySol)

Hey guys! Seems like the script was flipped. The gravity well caught us off guard. One minute we’re euphoric at 126K Bitcoin, the next we’re staring down at the red candles. Momentum didn’t just fade, it flipped.

**So, what happened?**

At the center of it all sits Trump, talking tariffs and trade war like it’s 2018 again. Trump started throwing around talk of “massive increases” in tariffs on China and hinting at scrapping talks with Xi. Markets reacted instantly. Stocks sank. The dollar jumped. Bonds rallied. And crypto, being the most sensitive risk asset on the board, took the biggest hit.

Bitcoin broke under 120K in hours. Over half a billion in longs got wiped. The same people screaming “up only” last week are now praying for support levels to hold.

![Bitcoin chart, via Hyperliquid](https://storage.googleapis.com/papyrus_images/1f5608a69e3ca9a62e305e638d45b54d490a870ffe1c2d9c6d0a15325d5537e6.png)

Bitcoin chart, via Hyperliquid

**Why This Matters**

1.  Global fear is back. Trade war talk kills risk appetite. Investors don’t want volatility when geopolitics is heating up. Crypto gets sold first.
    
2.  Leverage reset. Way too many overextended positions. Once the first wave of liquidations hit, the rest followed automatically.
    

**My Moves**

I’m not panicking. I took profits near the top and now I opened a few low-leverage longs during the drop. Nothing aggressive, just using gains from earlier to test the waters.

I’m treating this as a stress test. If these positions hold through the volatility, great. If not, no problem. I do have stop-losses in place and its money I can afford to lose. I’m not trying to catch the exact bottom, just positioning slowly while the noise dies down.

**The Bigger Picture**

This crash isn’t the end. It’s the cleanout we needed. We were already stretched thin, running on momentum and hype. Trump’s tariff talk just lit the match. Now the market’s doing what it always does: flushing weak hands and giving patient players better entries.

Crypto’s never been about straight lines up. It’s about who can take the hit, adapt, and keep moving.

So yeah, Trump poked the dragon, and we’re catching the fallout. But I’ll take a reset over blind euphoria any day. This is where the next setups are born.

Till the next update, Mkay.

---

*Originally published on [Mkay](https://paragraph.com/@mkay/crypto-crash-what-happened)*