Market Overview - On October 11, the U.S. stock market experienced a significant decline, with the Nasdaq dropping by 3.56%, FTSE A50 falling over 4%, and Hang Seng futures plummeting by 5% [1] - The cryptocurrency market faced even more severe losses, with approximately $19.3 billion in value wiped out and 1.66 million accounts liquidated [1] - Bitcoin saw a drastic drop from $122,000 to $102,000, marking a 16.4% decline, while Ethereum fell by over 20% [1] Cryptocurrency Performance - Other cryptocurrencies suffered even greater losses, with Dogecoin plummeting by 23% and several altcoins experiencing declines exceeding 50%, including TON coin which fell nearly 80% [3] - The data indicates that many smaller cryptocurrencies faced catastrophic drops, with some losing nearly 80% of their value within a short period [4] Causes of the Decline - The immediate trigger for the cryptocurrency crash was heightened risk sentiment due to geopolitical tensions, particularly following a tweet from Trump regarding potential tariffs [6] - High leverage in trading was identified as a significant factor contributing to the liquidation of positions, with Bitcoin contracts typically allowing leverage of 1-10x, and some reaching up to 125x [6] - Market liquidity issues were exacerbated by the crash, leading to a significant number of liquidations not only among retail investors but also institutional players and market makers [6] Notable Trades and Reactions - Despite the overall market downturn, some traders profited significantly, with reports of a trader making $19.2 million by shorting Bitcoin just before the crash [8] - A prominent trader, known as "Doll," reportedly lost $600,000 on Bitcoin spot trading but made $8 million by shorting Bitcoin contracts, showcasing the potential for profit even in a declining market [8]