The stock market saw a wild ending to the week.

On Friday, President Trump threatened to raise tariffs on China, which sent markets sharply lower.

The S&P 500 and Dow had their worst week since August, while the Nasdaq had its worst since May. The index fell back to levels last seen on September 11, wiping out a month of gains in one day. The Nasdaq dropped 3.5%, the worst among major indexes.

But the bigger shock came from crypto.

As stocks sold off, crypto markets collapsed. It was the largest liquidation event in crypto history.

Bitcoin moved more than $20,000 in a single day — its biggest daily swing ever — erasing $380 billion in market value within hours. That is more than the market cap of all but 25 public companies in the world.

Over 1.6 million traders were liquidated. Around $19 billion in leveraged positions were wiped out. This liquidation wave was about $17 billion larger than the February 2025 crash and 19 times larger than the collapse around FTX in 2020.

The main cause was too much leverage and too little liquidity. When the selling started, it led to a domino effect that accelerated the drop.

Another lesson in why you should avoid leverage.

There is an old saying on Wall Street: Stocks take the stairs up and the elevator down. That’s exactly what we’ve seen this week. The S&P 500 is now basically back to where we started a month ago.

This crash came just two days before the third anniversary of this bull market.

The last five bull markets all lasted longer than three years. The shortest lasted five years, and the average was eight. So, it’s unlikely that this one is over just yet.

Even after Friday, the S&P 500 has stayed above its 50-day moving average for 113 straight sessions, which is the longest streak since…