As you may have already seen, the crypto market nosedived right after the U.S. administration announced new tariffs.
Billions were wiped out in hours as trading firms and crypto institutions faced both the market crash and platform outages.
There are even (still unconfirmed) rumors of a major crypto liquidity provider going under.
What exactly happened, why was it dangerous, and what were we doing during it?
Just hours before the tariff announcement, Trump’s associated token WLFI began to plunge — likely due to insider selling by people who knew what was coming:
It’s a striking example of how political influence and crypto markets can mix in unsettling ways.
In short: insider trading meets presidential PR.
Why did the crash happen?
It was a perfect storm: a macroshock triggered by the tariff news, amplified by insider trading, record-high open interest, and Binance technical issues — including a pricing glitch on USDe/wBETH/BNSOL pairs and a short API outage:
Combined, these factors unleashed a cascade of liquidations like we’ve never seen before.
How bad was it really?
In dollar terms, this was one of the worst liquidation events in crypto history: $19 billion wiped out in a single day — shattering previous records:
Most of the pain came from altcoins, while Bitcoin and Ethereum held relatively better.
But make no mistake: Bitcoin still saw its steepest one-day drop since the FTX collapse in November 2022.
The average altcoin drawdown that day hit 69%, a brutal reminder of how risky low-liquidity tokens can be:
When liquidity dries up, prices can collapse within minutes — and this time, they did.
But that's not all:
Perhaps the most dangerous moment wasn’t even the crash itself — it was the Binance API outage.
For a while, traders couldn’t close their positions, even if they wanted to.
Some Forex brokers who rely on Binance liquidity also experienced massive price gaps.
In fast markets, being locked out can be dangerous.
How did this affect us?
At Algocrat AI, we were completely out of the market during this chaos, which means we haven't lost anything.
When we spot unexplained price gaps, unusual volatility, or signs of technical instability, we stay on the sidelines.
It's always better to be safe than sorry in such cases.
That's one of the reasosn why we've been able to achieve unmatched live results since 2020.
To conclude:
This crash will go down as one of the most chaotic moments of 2025’s crypto cycle — a sharp reminder that in this market, risk never sleeps.
Stay alert, stay skeptical, and never underestimate how fast things can break when macro meets manipulation.
Best,
The Algocrat AI Team
P.S. : When the market turns chaotic, most traders lose. We stayed out — and stayed safe. If you want to trade with a system that knows when not to trade: click here to apply now
