The cryptocurrency market crash on October 11, 2025, was caused by a combination of factors, mainly including the impact of tariff policies, the effects of the government "shutdown", changes in Federal Reserve policy signals, and the outbreak of leverage trading risks, as detailed below: 1. Impact of tariff policies: The Trump administration announced the restart of a high-tariff trade war with China, which instantly shattered global risk asset confidence. Trade wars can disrupt the global economic order, affect corporate profits and economic growth expectations, leading to a significant decline in investors' risk appetite, who began to sell off risk assets, and the cryptocurrency market was no exception, subsequently declining. 2. Effects of the government "shutdown": The U.S. federal government "shutdown" crisis continued to escalate, with the director of the White House Office of Management and Budget announcing that federal layoffs had begun, and several departments, including the Department of Homeland Security, had layoff plans. The government "shutdown" and layoffs would trigger market concerns about economic prospects, exacerbating market panic and causing investors to withdraw from the cryptocurrency market, thereby pushing down cryptocurrency prices. 3. Changes in Federal Reserve policy signals: Federal Reserve officials released cautious easing signals of "conditional interest rate cuts", causing cryptocurrencies, which rely on liquidity support, to lose their critical backing. This indicates that the Federal Reserve is maintaining a delicate balance between responding to economic slowdown and inflationary pressures, and market expectations of liquidity not being significantly eased led to a decline in the cryptocurrency market due to a lack of adequate funding support. 4. Outbreak of leverage trading risks: Leverage trading is prevalent in the cryptocurrency market, and high leverage makes investors' positions vulnerable to being liquidated during price fluctuations. In this crash, 90% were long position liquidations, with Bitcoin falling over 12% in a short period, and a large number of high-leverage positions hitting the liquidation line instantly, the selling pressure from forced liquidations further lowered prices, triggering more liquidations, forming a vicious cycle and exacerbating the degree of the cryptocurrency market crash. 5. Technical breakdown triggering panic: Mainstream cryptocurrencies like Bitcoin fell below critical support levels, such as Bitcoin breaking below the key support level of $110,000, triggering a wave of programmatic selling, and the technical breakdown shattered the confidence of bulls, causing panic sentiment to spread rapidly, leading more investors to follow the trend and sell off, accelerating the decline in cryptocurrency prices.