#venezuela Many new users are surely wondering what caused the market crash yesterday, October 10 in the afternoon. The most consistent and brief answer is that it was caused by the threat of massive tariffs from the United States.
Given Donald Trump's statements about the intention to impose or increase tariffs on Chinese products to very high levels. This, according to reports, is what may have caused the significant drop as cryptocurrencies, despite being an alternative asset, are very sensitive to global economic uncertainty.
And clearly, the vision of a new and major trade war between the two largest economies in the world (the United States and China) triggered a massive flight of capital from risk assets (Cryptocurrencies, stocks) to safe-haven assets (like gold), which caused chain liquidations.
There is also much talk that Binance and other exchanges did not allow buying or selling at the lowest points of this drop. What I have been able to see—note, not on official sites—is that there was a system overload due to panic selling and liquidations, and the crash was so sudden and violent that this extreme volume of transactions overloaded the platforms (Bitcoin fell more than 7%, Ethereum more than 11%).
That said, I would like to remind you that this has not been the first time that the crypto or stock market has suffered drops and corrections. It is our duty as traders to always remain calm, bet on stable coins with good futures, analyze well whether we want short-term, medium-term, or long-term gains, and trade based on those estimates. And if we are trading futures, do not leverage more than x10, as beyond that it is basically a gamble. Always use stop loss and use capital that we are willing to lose.
