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On October 10, 2025, the crypto world took a gut punch when former president Donald Trump said on social media he planned to slap a 100% tariff on Chinese imports. Within minutes, a huge sell order on a major exchange triggered a flash crash that wiped out billions in margin positions.
Bitcoin tumbled over 10%, Ethereum dropped below thirty five hundred, and alt coins like Solana and Dogecoin dived even harder. Estimates later showed more than seven billion dollars in positions evaporated in an hour, and about one point six million traders were washed out.
Opportunity in the Chaos
During the chaos, crypto gambling sites saw a sudden spike in traffic as users tried to make sense of the sell-off by spinning reels or testing luck at the tables. Amid the noise, Shiba Inu online casinos unexpectedly became a talking point among retail traders who saw the crash as a chance to scoop up tokens at a discount. Their idea is to buy low, stake them on gambling platforms, and wait for the market to bounce, banking on both staking rewards and price appreciation. It’s risky, and for many it feels more like a game than an investment, yet that same gamified mindset is what fuels much of the meme coin world.
Tariffs Ripple Through Global Markets
Many were surprised because the announcement seemed to come out of nowhere, and it left traders guessing what steep tariffs could mean for intelligent supply chains and consumer prices. For a market already jittery about rate hikes and geopolitical tensions, it felt like the last straw, and his Truth Social post about imposing a 100% tariff on China starting November one rattled risk assets.
Record-Setting Liquidations
About one point six million accounts were forced to close out margin trades, with leveraged bets on Bitcoin and Ethereum accounting for billions in losses. Open interest shrank by roughly nineteen billion dollars, the largest single-day wipeout on record. There are now more than 560 million crypto owners worldwide, yet the pool of capital remains tiny compared to equities, so a wave of liquidations can drain liquidity in minutes. Seasoned traders say the market is thinly traded, and a high percentage of positions are leveraged, which amplifies every move.
Meme Coins in the Spotlight
Meme coins like Shiba Inu are prone to wild swings because their value depends on social chatter as much as fundamentals, and after the crash, Shiba dropped more than half before clawing back some. That roller coaster may entice punters, but veterans caution against betting the rent on tokens that can double or halve in a day.
Major coins bounced as the weekend approached, but those rallies did little to soothe nerves. Until trade policy is clearer, traders will keep stops tight and timelines short; you figure it out as you go because in crypto, nothing stays still for long.
Some analysts say the sell-off was overdue, given the run-up in prices this year, and they expect volatility to persist. Others argue that the broader adoption of crypto means swings will become more muted over time. In any case, the week’s drama is a reminder that this market is still young and has a lot of growing pains left to work through, and that the mix of politics and trading sentiment can produce shocks without warning.
