{"id":16920,"date":"2025-10-12T07:47:32","date_gmt":"2025-10-12T05:47:32","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16920"},"modified":"2025-10-12T07:47:32","modified_gmt":"2025-10-12T05:47:32","slug":"crypto-markets-bounce-back-after-historic-liquidation-surge","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/12\/crypto-markets-bounce-back-after-historic-liquidation-surge\/","title":{"rendered":"Crypto Markets Bounce Back After Historic Liquidation Surge"},"content":{"rendered":"

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Today in cryptocurrency, digital asset traders\u2019 \u201cnormal justification\u201d behavior by attributing the market decline to Trump\u2019s tariffs, Zcash bounces back to pre-crash levels, and Crypto.com CEO Kris Marszalek has urged authorities to investigate exchanges after $20 billion in liquidations.<\/p>\n

Crypto traders attribute Trump\u2019s tariffs in pursuit of \u2018singular incident\u2019: Santiment<\/h2>\n

Retail crypto traders quickly blamed Friday\u2019s extensive<\/a> crypto market drop on US President Donald Trump declaring a 100% tariff on China, as they often search for something to hold accountable during declines, according to Santiment.<\/p>\n

Analysts, nonetheless, argue that the cause of the market decline is more profound than the tariffs alone.<\/p>\n

\u201cThis is standard ‘justification’ behavior from retailers, who feel the need to identify a singular event as the cause for a catastrophic decline in crypto,\u201d Santiment\u00a0noted<\/a>\u00a0in a Saturday report.<\/p>\n

\u201cAfter the decline, the crowd immediately converged to find a common understanding of what the drop could be ascribed to,\u201d Santiment mentioned, highlighting the surge in social media conversations about both the crypto market and US-China tariff issues.<\/p>\n

Zcash regains pre-crash highs<\/h2>\n

The value of Zcash (ZEC<\/a>) returned to pre-crash highs<\/a> and reached a new peak of around $293 on Saturday, following a swift flash crash on Friday that resulted in $20 billion in crypto liquidations within 24 hours.<\/p>\n

Zcash is trading at approximately $293 per coin at the time of this writing, after a drop of 45% on Friday; this price recovery distinguishes it from most of the altcoin market, which experienced significant losses continuing into Saturday.<\/p>\n

Zcash recovers to pre-crash levels and establishes a new high. Source: <\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

Altcoins plummeted by as much as 95% of their value on Friday, following an announcement from US President Donald Trump regarding increased tariffs on China.<\/p>\n

The crash marks the fastest and most extreme crypto liquidation event in the sector’s history and serves as a reminder of the dangers of leveraged trading<\/a>.<\/p>\n

Crypto.com\u00a0CEO calls for investigation into exchanges after $20B liquidations<\/h2>\n

Crypto.com CEO Kris Marszalek has requested a regulatory inquiry<\/a> into exchanges that faced the most significant losses after a record $20 billion in crypto liquidations occurred in the last 24 hours.<\/p>\n

In a Saturday post on X, Marszalek urged regulators to \u201ccarry out a comprehensive review of the fairness of practices,\u201d questioning whether trading platforms had experienced delays, mispriced assets, or failed to uphold appropriate\u00a0anti-manipulation and compliance measures<\/a>\u00a0during the crash.<\/p>\n

\u201cRegulators should investigate the exchanges that had the most liquidations in the past 24 hours,\u201d he stated. \u201cDid any of them grind to a standstill, effectively preventing people from trading? Were all transactions priced accurately and aligned with indices?\u201d<\/p>\n

Data from CoinGlass indicates that Hyperliquid led all platforms in liquidations, reporting $10.31 billion in wiped-out positions. Bybit followed with $4.65 billion, and Binance with $2.41 billion. Other significant platforms like OKX, HTX, and Gate recorded smaller totals, at $1.21 billion, $362.5 million, and $264.5 million, respectively.<\/p>\n

\"Cryptocurrencies,
Crypto liquidations approach nearly $20 billion. Source: CoinGlass<\/em><\/figcaption><\/figure>\n