All it took was one tweet from President Trump to send the crypto market into a spiral Friday, driving $19 billion in liquidations against people making future bets in the market.

Why it matters: Friday's shock was bad, but the real extent of any lasting damage will likely become clearer this week — if battered trading firms are forced into more large-scale selling.

The big picture: Trump's threat Friday to put 100% tariffs on Chinese goods sent everyone running for the exits, triggering an unwind in crypto that got so bad that marketplaces even closed out profitable positions, just to shed uncertainty.

• The hot jargon this week is ADL: auto-deleveraging.

By the numbers: CoinGlass, a data aggregator, said that over 1.6 million positions totaling $19.1 billion were liquidated that they know of, but the number is "likely much higher."

• At least $233 million in on-chain loans were liquidated as well.
• USDE, an exotic stablecoin whose peg is maintained using a basis trade, briefly broke its peg by 33%.
• (Worthy of your time: A startup founder explains how thin liquidity in certain derivative tokens made the bleeding worse due to mispricing by exchanges.)

The real pain came to the altcoin market, with TOTAL3 — which tracks the market cap of everything but bitcoin and ether — losing 20% of its value in short order, though it quickly regained about half of that.

• SUI is said to have seen a 70% drop. Worldcoin and Solana's SOL fell around 40%.

Bitcoin, the market leader, dropped to as low as $107,000 on some markets, a 15% drop in a day.

• All this came less than a week after the biggest cryptocurrency set a new all-time high above $126,000, prompting traders to believe that the market was setting up a fresh run higher.
• October is traditionally a strong month for bitcoin, too. So much so that it's known as "Uptober." This sparked additional confidence coming out of the prior weekend's rally.
• What a difference a day makes.

Yes, but: The market seems to be holding up OK. Bitcoin quickly recovered above $110,000. By Sunday, it was trading over $115,000 again, though it dropped again last night.

• It's likely that a lot of spot traders saw Friday's fall as a buying opportunity, getting in hoping for a recovery to become a rally.

What they're saying: "Despite last week's market turbulence, Bitcoin's movement remains consistent," Fadi Aboualfa, head of research at the crypto custodian, Copper, said in a statement.

• "With strong ETF influence and supportive technical signals, a brief move towards $100k would be viewed as a healthy retest rather than a cause for concern."

What we're watching: Whether or not the market holds.

• Friday's jolt was bad enough that it probably pulled some trading companies under. That could lead to more large-scale forced selling this week as they unwind positions and cover debts.

The bottom line: If bitcoin remains a six-figure asset through the week, then the market is likely back on track.

• If it doesn't, though, brace for headlines.

Friday was a bit of a fright, but it's not that scary when you put it in context.

Zoom out: The prices now basically wind the clock back to late September.

• Bitcoin started the year around $70,000. It's still trending upward on a long rally.

What they're saying: "If you were bullish on bitcoin and stocks three days ago, you should be even more bullish now. None of the fundamentals changed in the last 72 hours," Anthony Pompliano, crypto commentator and permabull, said in his daily newsletter this weekend.

• "We simply got a healthy reset that wiped out the excess leverage in the system."

💭 My thought bubble: Traders keep doing this to themselves.

• Every time they see a rally, they start placing leveraged bets, but leverage is the kiss of death.
• Best case, bitcoin is in a long accumulation phase. Which means that if the ride up is continuing, it will remain gradual. Traders can't get this through their heads.
• The market has gotten too big for a bunch of minnows hitting "buy" to make the price pop 30%. Those days are over.

The White House is likely to announce a new nominee to lead the Commodity Futures Trading Commission soon, Crypto in America reports.

• The newsletter expects the chief counsel of the SEC's Crypto Task Force, Mike Selig, to get the nod.

Zoom in: As if working for SEC Commissioner Hester Peirce were not a strong enough signal, Selig also worked for the CFTC as a clerk to Chris Giancarlo.

• Giancarlo would later chair the CFTC during Trump's first term. He's remembered as one of the few cautiously pro-crypto officials in the early days of blockchain policy.

😬 Pro-crypto Rs and Ds are not getting along, which dims hopes for a market structure bill in 2025. (Politico)

🔐 California Gov. Gavin Newsom signed a law to keep unclaimed cryptocurrency owned by his state's residents in their original form. (Decrypt)

💂 Britain's Financial Conduct Authority unveiled a tokenization plan. (The Block)

🤑 Despite all the red on the charts, someone YOLO'ed a billion dollars into tether last night. (@whale_alert)

🌽 Telcoin, the Nebraska-regulated company aiming to create digital cash, raised $25 million. (Businesswire)