According to @MilkRoadDaily, roughly $1 trillion in crypto market capitalization was wiped out in a single day due to a macro shock rather than hacks or protocol failures, source: @MilkRoadDaily. @MilkRoadDaily reports that China suddenly restricted exports of rare earth minerals, and hours later Donald Trump announced 100% tariffs on Chinese goods, reigniting trade-war fears and sparking the largest risk-off move since 2022, source: @MilkRoadDaily. Within 24 hours, over $20 billion in leveraged positions were liquidated across major exchanges as BTC, ETH, and SOL sold off in sync amid cascading margin calls, source: @MilkRoadDaily. A follow-up statement from Trump eased market stress; with leverage flushed, buyers returned and BTC reclaimed its price from two weeks prior with ETH following, source: @MilkRoadDaily.

According to @KobeissiLetter, the October 10 market selloff tied to tariff headlines may have been driven by a misunderstanding between Donald Trump and Xi Jinping, source: @KobeissiLetter on X, Oct 12, 2025. According to @KobeissiLetter, China’s rare earth export control notice was released on October 9 at roughly 8:30 am ET, about 26 hours before Trump posted about it, and it was not treated as market-moving news until after Trump’s post, source: @KobeissiLetter on X, Oct 12, 2025. According to @KobeissiLetter, China later clarified that the new measures are not a full export ban and that applications meeting regulations will be approved, source: @KobeissiLetter on X, Oct 12, 2025. According to @KobeissiLetter, this clarification lowers the probability of a proposed 100% tariff on China going into effect to extremely low, source: @KobeissiLetter on X, Oct 12, 2025. According to @KobeissiLetter, the episode coincided with the largest crypto liquidation in history and a roughly $2.5 trillion loss in S&P 500 market cap, indicating headline risk rather than a fundamental policy shift drove the move, source: @KobeissiLetter on X, Oct 12, 2025.