Bitcoin Plunge: $5.5B Liquidated After Trump Tariff Shock

The cryptocurrency market witnessed one of its most severe downturns of the year during the late hours of Friday, October 10, with Bitcoin prices falling by double digits in a matter of hours. The bearish pressure began when rumors of a renewed trade war between the United States and China emerged in the early trading hours, but the situation escalated dramatically after US President Donald Trump declared that the US would impose a 100% tariff on Chinese goods. This announcement sent shockwaves through the crypto market, triggering massive liquidations that exceeded $5.5 billion in less than sixty minutes.

Bitcoin’s price briefly plunged to as low as $101,500 during the peak of the selling frenzy, representing one of the most significant single-day drops in recent memory. As of the latest data, the premier cryptocurrency has recovered somewhat to trade around $113,250, though it remains down by nearly 7% over the past 24 hours. The rapid recovery suggests some market resilience, but the overall sentiment remains negative as traders assess the broader implications of the US-China trade escalation on cryptocurrency markets.

While the broader market was caught off guard by the tariff announcement, blockchain analytics platform Lookonchain revealed that one particular investor appeared to have anticipated the downturn. A Satoshi-era Bitcoin holder, who had been accumulating Bitcoin since the cryptocurrency’s earliest days, began piling up short positions totaling $1.1 billion as Bitcoin prices steadily declined toward $117,000 during the day. This massive bet against the market proved extraordinarily profitable when BTC crashed below $110,000, generating over $160 million in profits for the mysterious investor.

On-chain analyst Maartunn highlighted this investor’s activities in a recent post on social media platform X, noting that the timing of these trades was particularly suspicious. According to Maartunn’s analysis, this Bitcoin OG had demonstrated similar market foresight in recent months, selling portions of their 86,000 BTC stash when prices peaked around August 2025 and again when Bitcoin reached new highs in early October. The pattern of selling at market tops and then establishing large short positions just before significant downturns has raised eyebrows across the crypto analytics community.

The most intriguing aspect of the Satoshi-era investor’s activity involves their decision to open leveraged short positions on both Bitcoin and Ethereum on the Hyperliquid platform immediately before President Trump’s tariff announcement. Maartunn noted that the timing of these trades was ‘interesting,’ particularly given that the general crypto market soon witnessed a downturn directly tied to the US government’s policy decision. The analyst concluded that the evidence suggests the ‘Satoshi-era OG have insider ties to the US government,’ though no concrete proof has emerged to substantiate this claim.

The $160 million profit generated from the short positions represents one of the largest single-trade windfalls documented in recent crypto history, especially given the precise timing relative to a major geopolitical event. The fact that this investor had previously demonstrated similar market timing with their sales at August and October peaks adds weight to the speculation about potential insider information. The situation has reignited debates about market manipulation and the need for greater transparency in cryptocurrency trading, particularly when large holders appear to act on non-public information about government policy decisions that could impact market dynamics.