This week in crypto, the market suffered its biggest single-day crash in history. Australians woke up on Saturday morning to what many are now calling Crypto Black Friday, as more than US$19 billion in leveraged positions were wiped out within 24 hours. The sudden collapse rattled investors worldwide and abruptly halted the bullish momentum that had defined “Uptober,” replacing optimism with one of the sharpest waves of panic the industry has seen in years.

The chaos began late Friday in the United States when President Donald Trump announced plans to impose a 100 percent tariff on Chinese imports starting November 1. The announcement came during the final hours of the U.S. trading day, rattling equities and spilling into crypto markets just as traditional exchanges were closing for the weekend. The tariff threat reignited fears of a renewed trade war and caused an immediate rush to unwind risk positions, with Bitcoin and major altcoins bearing the brunt of the panic.

While the macro shock triggered the initial sell-off, the situation worsened as internal market mechanics began to unravel. Binance later confirmed a price depeg involving Ethena’s USDe, which caused forced liquidations across margin and futures markets. A brief oracle glitch on the exchange is believed to have amplified the volatility, mispricing assets and compounding losses for traders who were already caught in cascading liquidations.

In the aftermath, Binance and BNB Chain announced a combined US$728 million in recovery measures, including US$45 million in airdrops, US$283 million in post-crash compensation and a US$400 million industry fund designed to help restore confidence. Binance said the actions were goodwill initiatives aimed at supporting users and rebuilding trust, clarifying that the exchange does not accept liability for the losses.

Adding to the drama, on-chain analysts identified a large whale on Hyperliquid who placed huge short position on Bitcoin less than an hour before Trump’s tariff announcement. The trade reportedly generated around US$192 million in profit as prices plunged. Whether this was a case of extraordinary timing or something more calculated remains unknown, but the coincidence has fuelled speculation across trading circles.

Experts are still piecing together what caused the record crash. Some point to Trump’s tariff shock as the catalyst, while others believe exchange-level malfunctions and excessive leverage played a bigger role. The reality appears to be a combination of both — a perfect storm of macro pressure, system mispricing and overextended positions that collided to trigger the largest liquidation event in crypto history.

Bitcoin is now struggling to hold above US$110,000, with altcoins also under heavy pressure. Open interest across global crypto markets has fallen sharply, signalling a broad reduction in leverage as traders retreat to safer positions. October, usually a historically strong month for Bitcoin, is now in negative territory. The Crypto Fear and Greed Index has plunged to 28, signalling Extreme Fear across the market. Historically, such readings have often coincided with local bottoms, suggesting selling pressure may be nearing exhaustion if macro conditions stabilise.

Despite the widespread uncertainty, there are signs the market could find its footing in the weeks ahead. The CME FedWatch tool shows a strong probability of a 25 basis point interest rate cut, and inflows into spot Bitcoin ETFs remain steady, hinting at sustained institutional demand. Some analysts believe the combination of monetary easing, ETF inflows and gradually improving sentiment could support a rebound later in the month.

Meanwhile, optimism persists among long-term investors. Market figures including Tom Lee and Arthur Hayes have reaffirmed forecasts of US$10,000 Ether before the end of the year, citing strong network fundamentals and a wave of corporate accumulation between July and September. Beyond crypto, gold reached a new all-time high this week as central banks and retail buyers continued to seek safety from currency and inflation risks. Bitcoin continues to mirror gold’s store-of-value appeal, but its smaller market size keeps volatility high during market shocks.

Crypto Black Friday will be remembered as one of the defining moments of 2025 — a reminder of how quickly sentiment can shift in a market driven by leverage and emotion. Whether it marks the end of Uptober’s rally or the reset needed for the next leg up will depend on how quickly confidence returns in the days ahead.

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