Crypto Markets Face Massive Bloodbath!

In recent days, as the Trump administration once again wielded the "tariff weapon," the cryptocurrency market experienced a cliff-like plunge. Within 24 hours, over $19.3 billion worth of cryptocurrency positions were liquidated, with nearly 1.67 million traders facing forced closures, marking the largest liquidation event in crypto history.

On October 12, cryptocurrencies continued their downward spiral, with Bitcoin falling below the $110,000 threshold once again. Solana dropped over 7%, while Ethereum, BNB, XRP and others followed suit. According to CoinGlass data, over 200,000 people faced liquidations in the past 24 hours, with liquidation amounts reaching $570 million, of which over 70% were long position liquidations.

A trader who accurately predicted the 2022 cryptocurrency crash has warned that the crypto market may be facing a new "black swan" event, with downside risks remaining significant.

**Cryptocurrencies Continue Sharp Decline**

Following the major plunge on the evening of October 10, market sentiment in the cryptocurrency space has yet to stabilize. On October 12, cryptocurrencies led by Bitcoin continued their correction. At the time of writing, Bitcoin traded at $109,925, down nearly 3% in 24 hours, while Ethereum fell over 3% to $3,719. Other cryptocurrencies experienced even larger declines: XRP down 4.83%, Solana down 7.32%, Dogecoin down over 8%, and Cardano down 6.58%.

CoinGlass data shows that in the past 24 hours, cryptocurrency contract liquidations across the network reached $570 million, affecting over 206,000 people. Of this, long position liquidations accounted for $420 million, while short position liquidations totaled $150 million. The largest single liquidation occurred on Binance-ETHUSDT, valued at $11.52 million.

On October 10 Eastern Time, Trump renewed tariff threats, causing global market risk-aversion sentiment to surge rapidly as investors rushed to sell risky assets. Subsequently, cryptocurrencies including Bitcoin, Ethereum, and BNB experienced sharp declines. Bitcoin plummeted from $122,000 directly to $103,900, a drop of nearly 15%. Ethereum, XRP, Cardano, and Dogecoin all fell over 20% from peak to trough. Within 24 hours, cryptocurrency liquidations reached $19.3 billion network-wide, with nearly 1.67 million traders forced to close positions, with long position losses accounting for over 85%.

However, just half an hour before Trump announced the tariff policy, a mysterious "whale" account established massive Bitcoin and Ethereum short positions on the decentralized exchange Hyperliquid. After the tariff policy announcement, cryptocurrencies plunged as expected, and this "whale" account profited nearly $200 million in a single day.

A popular on-chain analysis account @mlmabc posted on X, saying this was only what was visible on Hyperliquid, asking people to imagine what this "whale" account did on CEX or other platforms. "I'm pretty sure this person played a huge role in what happened today."

This incident has also prompted market reflection: in cryptocurrency markets hailed as the frontier of "decentralized" finance, power and information seem to be re-centralizing in more covert and efficient ways.

**Prominent Trader Warns: New "Black Swan" Ahead**

According to TheStreet, a trader who accurately predicted the 2022 cryptocurrency crash recently issued a warning that the crypto market may be facing a new "black swan" event. The trader, known by the pseudonym "Crypto King," pointed out after this week's cryptocurrency market crash that this might only be the beginning of disaster.

In market analysis published on October 11, this trader, who gained fame in retail circles for accurately predicting the 2022 cryptocurrency market collapse, warned that October 10's crash was a "precursor to a 'black swan' event." He noted that while altcoins have experienced "historic-level collapse," several mainstream currencies "have not yet completed deep corrections."

The trader emphasized that although Bitcoin has held the $100,000 level, it is far from reaching the "adequate adjustment range of $60,000 to $70,000," meaning "downside risks remain significant" before the market builds a solid bottom.

He also warned of "structural cracks" in traditional markets that could trigger "brief global turbulence" under specific conditions, shaking confidence in core systems and forming a "reset before a new phase." In simple terms, new tariffs have caused global investors to panic about rising costs, trade delays, and slowing economic growth, prompting capital flight from risky assets like cryptocurrencies and stocks toward safe-haven assets like the dollar and bonds.

In his short-term outlook, the trader predicted "brief consolidation over the weekend" followed by "further downside" as liquidity returns next week.

This "Crypto King" is known for pessimistic macro predictions. During the 2022 FTX collapse, he accurately predicted Bitcoin would fall to the $13,000-$14,000 range and warned altcoins would face "ultimate liquidation," predictions that ultimately proved correct.

Notably, a major UK trading platform recently warned some investors against including cryptocurrencies in their investment portfolios.

According to reports, the UK's long-standing ban preventing retail investors from participating in cryptocurrency Exchange Traded Notes (ETNs) was lifted on October 8. With the ban lifted, retail investors can now establish exposure to digital tokens through regulated exchanges, which is undoubtedly a "celebration" for investors hoping to profit from relaxed cryptocurrency regulatory policies.

However, the new regulations prompted Hargreaves Lansdown, the UK's largest retail trading platform, to quickly issue warnings, urging UK retail investors to remain cautious. The company stated that its view is that Bitcoin does not belong to any asset class, nor do they believe cryptocurrencies possess characteristics that would justify their inclusion in portfolios to achieve growth or income objectives, and should not be used as a means to help clients achieve financial goals.

Hargreaves Lansdown stated that cryptocurrencies cannot be analyzed for performance, and unlike other alternative asset classes, they have no intrinsic value. While Bitcoin's long-term returns have generally been positive, Bitcoin has also experienced multiple severe losses and is a highly volatile investment product with risks far exceeding those of stocks or bonds.