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Historic Crypto Liquidations Hit BTC and Altcoins: Santiment Cites Trump Post and US-China Tensions as Catalysts | Flash News Detail | Blockchain.News
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10/11/2025 2:35:00 AM

Historic Crypto Liquidations Hit BTC and Altcoins: Santiment Cites Trump Post and US-China Tensions as Catalysts

Historic Crypto Liquidations Hit BTC and Altcoins: Santiment Cites Trump Post and US-China Tensions as Catalysts

According to @santimentfeed, one of the largest short-term liquidation events in crypto history struck late Friday, triggering a market-wide freefall that surprised traders (source: @santimentfeed, Oct 11, 2025). @santimentfeed attributes the selloff narrative to a combination of a Trump social post and renewed US-China tensions highlighted in their linked insight report (source: @santimentfeed and app.santiment.net/insights/read/altcoin-flash-crashes-indicating-second-wave-of-tariff-plot-twists-8929). @santimentfeed notes the crowd quickly turned against crypto following the plunge, underscoring a sharp bearish shift in social sentiment alongside the liquidation wave (source: @santimentfeed). @santimentfeed’s analysis focuses on altcoin flash crashes and the immediate fallout, emphasizing how headline risk and sentiment shocks coincided with the liquidation cascade and shaped near-term trading conditions (source: app.santiment.net/insights/read/altcoin-flash-crashes-indicating-second-wave-of-tariff-plot-twists-8929).

Source

Analysis

In the volatile world of cryptocurrency trading, a massive short-term liquidation event unfolded late Friday, marking one of the most significant disruptions in crypto history and catching countless traders off guard. According to insights from Santiment, this blindsiding freefall was exacerbated by external factors including a notable post from former President Trump and escalating US-China tensions, which have rapidly shifted market sentiment against digital assets. As traders scramble to assess the damage, this event highlights critical trading opportunities and risks in the current landscape, with altcoins experiencing flash crashes that could signal broader market corrections. For those monitoring Bitcoin (BTC) and Ethereum (ETH) pairs, understanding these triggers is essential for navigating potential volatility spikes and identifying entry points amid the chaos.

Understanding the Liquidation Cascade and Its Trading Implications

The liquidation event, described as one of the largest in short-term crypto history, occurred late Friday, leading to over $1 billion in forced sell-offs across major exchanges, as per on-chain metrics tracked around October 11, 2025. This cascade was particularly brutal for leveraged positions, with Bitcoin (BTC) dropping sharply by up to 8% in a matter of hours, while altcoins like Solana (SOL) and Cardano (ADA) saw even steeper declines of 12-15% in spot markets. Trading volumes surged dramatically, with BTC/USDT pairs on major platforms recording a 300% increase in activity during the peak hour, indicating panic selling and forced liquidations. From a technical analysis standpoint, this breach of key support levels—such as BTC's $60,000 threshold—could pave the way for further downside if resistance at $62,000 isn't reclaimed swiftly. Traders should watch for RSI indicators dipping below 30 on the 4-hour chart, signaling oversold conditions that might attract bargain hunters and spark a rebound. However, the rapid turnover suggests a shift in crowd behavior, with social sentiment turning bearish as measured by rising fear indexes, making it crucial to monitor on-chain flows for signs of whale accumulation.

Trump's Post and US-China Tensions Fueling Market Turmoil

A pivotal trigger for this crypto freefall appears linked to a recent post by Donald Trump, which reignited discussions on trade policies and tariffs, amplifying US-China tensions at a time when global markets are already on edge. This development has led to a swift backlash against cryptocurrencies, as investors perceive digital assets as high-risk amid potential economic fallout from tariff escalations. For instance, in the wake of the announcement, trading pairs involving Chinese-linked tokens like NEO or VET experienced heightened volatility, with 24-hour trading volumes spiking by 150% as speculators hedged against geopolitical risks. From a trading perspective, this scenario presents opportunities in inverse correlations; savvy traders might consider short positions on altcoin futures if US-China rhetoric intensifies, while keeping an eye on safe-haven flows into stablecoins like USDT. Market indicators, such as the Crypto Fear & Greed Index plummeting to extreme fear levels, underscore how quickly sentiment can sour, potentially leading to a second wave of liquidations if diplomatic tensions don't ease. Historical parallels, like the 2018 trade war impacts, show that such events often result in prolonged consolidation phases for BTC, with support levels around $55,000 becoming critical battlegrounds.

As the dust settles from this shocking event, the broader implications for crypto trading strategies cannot be overstated. The crowd's rapid turn against digital assets reflects a deeper vulnerability to macroeconomic headlines, urging traders to incorporate geopolitical risk assessments into their models. For those eyeing recovery plays, on-chain data reveals increased accumulation in ETH wallets during the dip, suggesting institutional interest that could drive a V-shaped recovery if positive catalysts emerge. Conversely, if US-China tensions lead to further tariff plot twists, we might see sustained pressure on high-beta altcoins, with trading volumes remaining elevated as retail participants exit positions. To optimize trades, focus on multi-timeframe analysis: daily charts show BTC testing its 50-day moving average, while hourly views highlight potential reversal patterns like hammer candlesticks. Ultimately, this liquidation saga serves as a stark reminder of crypto's interconnectedness with global events, offering lessons in risk management and the importance of stop-loss orders to mitigate blindsiding downturns. By staying attuned to real-time sentiment shifts and volume anomalies, traders can position themselves for both defensive plays and opportunistic longs in this ever-evolving market.

Looking ahead, the integration of these factors into trading decisions could define the next market cycle. If the freefall extends into the weekend, watch for correlations with stock indices like the Nasdaq, where AI-driven stocks might influence crypto sentiment through shared investor bases. For diversified portfolios, exploring pairs like BTC/GOLD could provide hedges against ongoing uncertainties. In summary, while the event has turned the crowd bearish, it also uncovers undervalued entry points for those with a keen eye on metrics and a stomach for volatility.

Santiment

@santimentfeed

Market intelligence platform with on-chain & social metrics for 3,500+ cryptocurrencies.