Gate Daily (October 11): Trump imposes 100% tariffs on China leading to a Bitcoin flash crash; banks plan to launch stablecoins pegged to G7 currencies.

Bitcoin (BTC) price big dump flash crash, reported at around 112,548 USD on October 11. After Trump announced a 100% tariff on China, the price of Bitcoin once fell to 1,020,000 USD. Banks are exploring the launch of stablecoins pegged to G7 currencies, including the USD, Euro, and Yen. Kalshi raised 300 million USD to expand the prediction market to 140 countries.

Today's Outlook

1. China's foreign exchange reserves at the end of September (in billion USD) were 3322.15, previous value.

2. Total number of oil drilling rigs in the United States (units) (as of 1010), previous value was 422.

Macro Events & Coin Circle Hotspots

1. On October 10, U.S. President Trump announced a 100% tariff on China, causing Bitcoin prices to briefly fall below $110,000. The tariffs first announced by Trump in April impacted the cryptocurrency market and raised concerns about an economic recession. Shortly after Trump announced this news, the Bitcoin BTC/USDT futures on Binance dropped to $102,000, the lowest point since BTC fell below $100,000 at the end of June. According to CoinGlass data, a total of $9.4 billion in cryptocurrency market positions were liquidated in the past 24 hours, of which $7.15 billion were leveraged long positions.

2. Some banks are exploring the launch of stablecoins focused on some of the world's major fiat currencies, including the US Dollar, Euro, and Japanese Yen. According to a statement from BNP Paribas on October 10, several banks, including Bank of America, Goldman Sachs, Deutsche Bank, and Citigroup, have initiated a project to explore “the issuance of a 1:1 reserve-backed digital currency to provide a stable payment asset usable on public blockchains,” which will be pegged to the currencies of the Group of Seven (G7) countries: the United States, Canada, the United Kingdom, France, Germany, Italy, and Japan. The banks stated, “The goal of the initiative is to explore whether a new industry-wide product can deliver the benefits of digital assets and enhance competition across the market while ensuring full compliance with regulatory requirements and best practice risk management.” The statement did not disclose a timeline for the project, but the project may face competition from Tether's USDt (USDT), which is the largest stablecoin by market capitalization.

3. The prediction market Kalshi, headquartered in the United States, has completed another significant round of financing, expanding its platform to over 100 countries worldwide. The company announced on October 10 that Kalshi has completed a Series D funding round of over $300 million, led by Sequoia Capital and Andreessen Horowitz (a16z), with participation from Paradigm. Kalshi stated in a release that the platform is currently live in over 140 countries/regions, adding that it has now become “the only unified global prediction market in the world, instantly adding billions of new potential customers.” A few months ago, Kalshi had just completed another funding round of $185 million, led by Paradigm, with participation from Sequoia Capital.

Market Trend

1. Latest news on Bitcoin: $BTC price big dump flash crash, currently reported at around 112,548 USD, with a liquidation of 5.34 billion USD in the past 24 hours, mainly from long positions;

2. The U.S. stock market closed on October 10, with the Dow Jones Industrial Average initially down by 1.9%, the S&P 500 down by 2.7%, and the Nasdaq down by 3.5%. The Nasdaq and S&P 500 indices recorded their largest single-day declines since April 10. Major tech stocks fell broadly, with Amazon (AMZN), Tesla (TSLA), and Nvidia (NVDA) down about 5%, and Apple (AAPL) down 3.45%.

(Source: Gate)

3. In the Gate BTC/USDT liquidation map, based on the current 112,673.50 USDT, if it falls to around 112,051 USDT, the total liquidation amount of long positions exceeds 178 million USDT; if it rises to around 120,070 USDT, the total liquidation amount of short positions exceeds 1.66 billion USDT. The liquidation amount of short positions is significantly higher than that of long positions, so it is recommended to reasonably control the leverage ratio to avoid triggering large-scale liquidations during market fluctuations.

(Source: Coinglass)

4. In the past 24 hours, BTC spot inflow was 8.3 billion USD, outflow was 9.1 billion USD, with a net outflow of 800 million USD.

(Source: Coinglass)

5. In the past 24 hours, contracts such as $COAI, $ATH, $IN, $BTCDOM, and $BAN have seen a net outflow, indicating trading opportunities.

News Dynamics

1. WLFI related address bottomed out at 10 million USD in the early morning and then fell sharply, with holdings still down over 30%.

2. DTCC included Bitwise Avalanche ETF, code BAVA

3. USDe experienced a severe depeg this morning, Ethena stated that the minting and redemption of USDe are functioning normally, and the assets are still over-collateralized.

4. Galaxy raises $460 million to drive the transformation of AI data centers in Texas.

5. Grayscale is considering including its future investment products' asset list, which consists of 31 tokens including JUP.

6. Trump-related company Dominari Holdings collaborates with Hemi to develop a digital asset treasury and ETF platform.

X KOL Selected Insights

Phyrex Ni (@Phyrex_Ni): “There should be no doubt about today’s market crash; it is entirely due to Trump’s article regarding China. The market had already assumed that the relationship between China and the U.S. was not particularly friendly, but the prolonged tariff timeline still brought about an ostrich effect. However, Trump’s article directly tore apart a weak link in the tariffs, as the issue of rare earth minerals could lead to another round of tariff games between China and the U.S. Since February last year, every time the tariff issue involves China, it results in a market fall, and this time is no exception. However, I still believe that the relationship between China and the U.S. will not escalate to a very tense level. The last 125% tariff also ended through negotiations between the two countries, so I personally do not think that the relationship between China and the U.S. is reversing market trends. But right now, there is indeed some panic in the market, which is unavoidable. I don’t know how long it will take to get through this situation. Moreover, the panic may not be over yet, as we still need to watch the reactions of our Asian partners during Asian hours.”

“Looking back at the data for Bitcoin, although the price has dropped quite significantly, there are currently no signs of panic among investors. The key is to observe the trends in the Asian market after daytime. If our friends in the Asian time zone also enter a state of panic, it could potentially become more troublesome, especially if China issues countermeasures during the day, which could further escalate market panic. From the perspective of chip structure, no major issues have been identified at this time; it should just be the political-induced panic. Investors who are in the red have not shown obvious signs of panic yet, so let's see when this issue can be resolved.”