The cryptocurrency market was plunged into chaos on October 10, 2025, erasing a staggering $1.65 trillion from its total capitalization in a single day.
Triggered by U.S. President Donald Trump’s abrupt announcement of 100% tariffs on Chinese imports and stringent export controls on critical software, the sell-off rippled through global exchanges, liquidating over $19 billion in leveraged positions and affecting 1.6 million traders worldwide.
Bitcoin, the market’s bellwether, nosedived 8% to $111,000, shedding $500 billion in market value, while Ethereum cratered 12% to $3,778, amplifying the pain across altcoins like XRP and Solana.
The overall market cap plummeted from $4.3 trillion to $3.74 trillion, marking the largest one-day wipeout in crypto history.
This geopolitical shockwave—rooted in escalating U.S.-China trade tensions—ignited a cascade of automated margin calls and panic selling. Coinglass data revealed $7 billion liquidated in the first hour alone, with Bitcoin longs accounting for $5.34 billion and Ethereum for $4.39 billion.
Analysts like Vincent Liu of Kronos Research attributed the rout to “institutional over-leverage” exacerbated by macroeconomic fears, as the stronger U.S. dollar and hawkish Federal Reserve policies made risk assets like crypto unpalatable.
“This isn’t just a crypto event; it’s a symptom of broader trade war contagion,” said Brian Strugats, head trader at Multicoin Capital, warning of potential spillover into stocks and commodities.
Nowhere was the agony more acute than in Nigeria, Africa’s crypto powerhouse, where digital assets have become a lifeline amid chronic naira devaluation and 34% inflation. With over 32% of Nigerians owning crypto—ranking the country second globally in adoption—the market’s collapse struck like a thunderbolt, vaporizing savings and shattering dreams for thousands of retail traders.
In Lagos’ bustling tech hubs and Abuja’s peer-to-peer (P2P) trading circles, the news spread like wildfire, leaving a trail of frozen screens and frantic WhatsApp groups.Take Aisha Okon, a 28-year-old freelance graphic designer from Lagos. She had poured 2 million naira—equivalent to six months’ earnings—into Bitcoin and Ethereum via Binance P2P, hoping to hedge against the currency’s freefall since President Bola Tinubu’s 2023 float.
“I woke up to my portfolio down 70%. It’s not just money; it’s my escape plan,” Okon told reporters, her voice cracking over a glitchy video call. Her story echoes across Nigeria, where crypto volumes hit $400 million monthly pre-crash, driven by remittances and inflation-proofing.
P2P platforms like Paxful and Yellowcard, which facilitate naira-to-stablecoin swaps, saw trading volumes spike 145% during the frenzy as desperate users dumped assets for any liquidity.
For many, the wipeout compounds years of regulatory whiplash. The Central Bank of Nigeria’s (CBN) 2021 ban on bank-crypto dealings forced traders underground into P2P networks, but the March 2025 Investments and Securities Act finally legitimized digital assets as securities, spurring a brief adoption boom.
Yet, the Economic and Financial Crimes Commission (EFCC) continues probing “market manipulation” via crypto, freezing hundreds of accounts in 2024 alone.
“We turned to crypto because banks charge 20% on transfers and the naira loses 24% yearly,” said Chinedu Eze, a 35-year-old Abuja-based trader who lost 1.5 million naira in the crash. “Now, Trump’s tariffs hit us hardest—our dollar-pegged hopes evaporated overnight.”
Social media erupted with despair. On X (formerly Twitter), #NairaCryptoCrash trended, with users like @CryptoNaijaKing
posting: “From ATH dreams to zero. Nigeria’s youth built this market on hope—now it’s ashes. When will the pain end?”
Forums buzzed with tales of leveraged bets gone wrong: a Port Harcourt engineer liquidated after borrowing at 50% interest to chase Solana highs, or a student in Enugu whose tuition fund halved. “It’s psychological torture,” Eze added. “We trade for survival, not greed, but volatility doesn’t care.”
Nigeria’s crypto ecosystem, valued at billions and employing thousands in startups like Busha and Quidax, now teeters. The Blockchain Nigeria conference in February drew 5,000 attendees dreaming of Web3 jobs, but this crash has chilled investments.
Edul Patel, CEO of Mudrex, sees a silver lining: “October corrections often precede 21% rallies. This is a dip for patient holders.”
Yet, for Okon and Eze, resilience feels hollow. “Crypto promised freedom from naira woes,” Okon sighed. “Instead, global politics chained us tighter.”As markets stabilize—Bitcoin hovering at $112,000—Nigerian traders regroup, eyeing stablecoins like Tether for refuge.
But with trade wars looming and local regs tightening, the agony lingers. In a nation where 52% of crypto users allocate over half their assets to digital coins, this wipeout isn’t just financial—it’s a gut punch to a generation’s gamble on tomorrow.
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