In October, the cryptocurrency market experienced unprecedented volatility, resulting in the liquidation of 1.6 million traders and a $19 billion collapse. This event marked the largest deleveraging in crypto history, following a period of optimism after Trump's 2025 election, which had previously driven Bitcoin to record highs.
The market's instability was exacerbated in April by Trump's tariff threats, maintaining high volatility due to extreme open interest. Earlier in February, a correction had already wiped out $3.6 billion in positions. The October crash underscored the inherent risks of leveraged trading in a market characterized by sharp fluctuations and limited liquidity.
1.6 Million Traders Liquidated in $19 Billion Crypto Crash
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