Trump's tweet blew up the October market: Behind BTC's cliff fall of 125 billion lies the most dreaded issue in the crypto market.

No one expected that the crypto market would be overturned by a social media tweet in October—early on the 11th, Trump suddenly criticized China's rare earth policies on social media and even threatened to retaliate with significant tariff increases. As soon as this news was released, the previously calm market felt like it had been hit by a bomb, and panic quickly spread through the network.

The first to be affected is the crypto market. Within just a few hours, the total market value of cryptocurrencies evaporated by 125 billion, with Bitcoin diving straight down from above 121,000 USD, plummeting below the 119,000 USD mark in one go; Ethereum fared even worse, with a daily drop of nearly 5 percentage points, directly falling below 4,200 USD. The worst off are those players using high leverage; the market fell too quickly and fiercely, and many didn't even have time to hit the margin call button before their accounts were "liquidated" in a drastic manner, not only losing the profits they had made before, but potentially even losing their principal.

Not only the crypto market, but the US stock market has also not escaped this wave of impact. The Nasdaq index fell by 2 points in a single day, marking the largest single-day drop in recent months, while the S&P index also faced downward pressure. Ultimately, this is a typical "geopolitical black swan" attack — the US-China trade relationship was already tense, and Trump's tweet effectively snapped the tension.

The market has always feared not the "bad results", but the "uncertainty". Once the risk of escalating trade wars emerged, everyone began to panic. Whether it is cryptocurrency or stocks, any asset with a hint of risk was frantically sold off. Everyone just wants to exchange their money for safer assets to hedge against risks.

As for how the subsequent market will behave, the core still depends on the dynamics between China and the United States. If both sides continue to "hardline", the market will likely continue to fluctuate in turmoil, making it difficult to have a stable upward trend; for the crypto market, this recent fall has also completely torn away its disguise as a "safe-haven asset"—in the face of global panic, it simply cannot withstand it; it will fall as it should, and may even fall harder than traditional markets. After all, at its core, cryptocurrency is still that high-volatility player that goes crazy when it rises and crazier when it falls. To make money in this space, one must first endure this "roller coaster" impact.