https://www.citationneeded.news/anatomy-of-a-crypto-meltdown/
"At 4:50 pm on October 10, when traditional markets were closed, Donald Trump
launched a new salvo in the simmering US–China trade war. Likely referring to
China’s dramatically expanded restrictions on the rare earth minerals it almost
singlehandedly controls, Trump posted that he would retaliate with an imminent
100% tariff increase on the country and new export controls on software. The
timing muted the announcement’s impact on US equities markets and left Asian
markets largely untouched,1 but crypto absorbed the full shock of the
Trump-induced panic. The episode compressed a global liquidity crisis into less
than an hour — a sign that the market most eager to be taken seriously may also
be the one least equipped to handle real-world shocks.
Bitcoin shed more than $10,000 in a matter of minutes, with the flash crash
wiping out at least 10% of its value instantly and pushing prices 15% below
their morning levels. Traders holding $19 billion in leveraged positions were
liquidated in a blink, and complaints erupted on social media as crypto
platform glitches exacerbated losses.
The worst of the chaos was over quickly, and Trump’s Sunday retreat from his
bold threats made only days prior helped to further stabilize jumpy markets —
though bitcoin continues to trade down about 13% below its price from that
morning, and 16% below its all-time high set only the prior Monday. But the
October 10 panic gave a valuable reminder of the frightening speed at which
crypto markets can unravel, and a dire warning for a future scenario in which
crypto is further integrated into traditional finance."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
