Puffer
Bitcoin
ZKsync
NEAR Protocol
Walrus
Pearl
Ondo
Key Insights:
- Trump’s tariff announcement led to billions in crypto losses within hours.
- One whale earned over $160 million by betting against Bitcoin and Ethereum just before the crash.
- While leverage boosted gains for one trader, it caused widespread liquidations for many others.
A surprise tariff announcement by U.S. President Donald Trump sent shockwaves through global markets. The new policy imposes a 100% tariff on imports from China.
Within hours, the news triggered panic selling in stocks and cryptocurrency, erasing billions of dollars in value. However, one BTC whale made a substantial fortune, while the majority of traders incurred losses.
The trader made more than $160 Million in a single day by shorting Ethereum and Bitcoin right before the announcement.
Trump’s Crypto Tariff Shakes the Market
President Trump declared a 100% tariff on all imports from China on October 10. On November 1, the new policy will go into effect. The unexpected news sent world markets into a panic. Within hours, the price of cryptocurrencies fell dramatically.
Bitcoin dropped 7.5% to $112,505. Ethereum fell an additional 12.5% to $3,837. Leveraged positions caused the entire cryptocurrency market to lose more than $17 billion. Many traders were taken by surprise. One whale, however, was prepared.
Whale’s Smart Short Strategy
The whale set up short positions using Hyperliquid, a decentralized cryptocurrency exchange. Shorting means betting that prices will go down. Shortly before the tariff news broke, the whale initiated prominent short positions on Ethereum and Bitcoin.
According to analyst @mlmabc on X (formerly Twitter), the whale’s trades were well-timed. To increase profits, they employed a lot of leverage. With leverage, traders can borrow funds to expand the size of their positions.
The whale made $72.33 Million by closing all short Ethereum positions. With 5.38x leverage, they still have a $92.84 Million short position in Bitcoin. Over $90 Million has already been earned in that role. The combined profit exceeds $160 Million.
Analysts monitored the trades on-chain, and the whale’s wallet address is publicly available. The timing raises the possibility that the trader was aware of the tariff announcement beforehand.
Since centralized exchanges are more difficult to track down, some people speculate that they could have made even more money.
Market Reaction and Speculation
The tariff news sparked a quick response from the cryptocurrency market. Traders had to rush to change their positions. Due to losses, many were liquidated, which means that their trades were compelled to close. This exacerbated the downward pressure on prices.
The whale’s success triggered online discussions. Was it insider knowledge, skill, or luck? Some users commended the trader’s timing. Others questioned the fairness of it.
The whale “played a major role in the market’s reaction,” according to the analyst who made the discovery. Additionally, they cautioned that as the tariff deadline approaches, there may be increased volatility.
What This Means for Crypto
This incident serves as a prime example of how global politics can impact cryptocurrency markets. One trader experienced a huge gain and billions of dollars in losses as a result of a single announcement.
It also highlights the effectiveness of decentralized exchanges. Anyone can engage in large-scale, anonymous trading.
It reminds regular investors to exercise caution. Gains and losses can both be amplified by leverage. Additionally, news has the power to shift markets rapidly. Traders will be closely monitoring the tariff deadline of November 1.
