Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Tuesday, October 14th. And today we're talking about the very short bare market of October 25. Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation, come join us on the breakers discord. You can find a link in the show notes or go to bit.ly slash breakdown pod.

All right, friends, well, welcome back after a long weekend in the States. Now, hopefully,

you were out enjoying some beautiful fall air and falling leaves. But for those of you who

actively trade, I know this was one of the crazier weekends of the cycle. We had a huge

liquidation cascade, widespread market turmoil, and numerous tokens going

to actual zero. It was a market event unlike anything we've seen since the collapse of Luna,

or perhaps even the COVID crash in 2020. And like so many events of this cycle, it all started

with the presidential tweet. On Friday morning, Trump announced on Truth Social that the U.S.

would impose an additional

100% tariff on China in retaliation for export controls on rare earth metals. Market sold off all

day with the S&P 500 falling by 2.7% and the NASDAQ dropping 3.5%. Last Friday was the worst

day for stocks since the original tariff announcements in April. Bitcoin also dove collapsing

by more than 7% on the day. Importantly, the collapse in crypto took place over two distinct

phases. There was a relatively well-controlled drawdown across the daytime trading session in New

York. Then, as the stock market closed, the crypto ecosystem saw a violent flash crash. Bitcoin

lost 5.5% in the space of an hour, while alt coins were an absolute bloodbath. Kobe wrote, probably one of the most severe flushes I've ever seen on Alt. I didn't even imagine Alt's had this much leverage in them. It feels like somebody got hit very hard, and we will see a large body float to the surface soon. Reminds me a little of summer

2021. Reckmando tweeted, I haven't seen a move like that since I've been trading crypto. Coins don't go

down 80 to 90% in a wick, have to assume a market maker or liquid fund blew up. Several coins in the

top 100 had wicks down to very close to zero, meaning this very clearly wasn't an announcement-driven

sell-off or a typical leverage unwind. Bitcoin Jack commented, everyone who still thinks this

...