Leverage, China Tariffs, Or Both?
$19 billion in forced liquidations. $450 billion in erased market value. That was the toll of the crypto market’s largest-ever liquidation event on October 10, which saw the total market cap drop from $4.24 trillion to $3.79 trillion. The historic crash left investors trying to pinpoint the cause: Was it escalating trade tensions between major economies, or was the market’s own excessive leverage to blame?
In the heat of the moment, speculation turned to technical problems on exchanges. Binance quickly countered this narrative, stating that “overall market conditions” were the real driver of the volatility, not its systems, which it confirmed were operational. The exchange followed up with a…
