LAGOS, NIGERIA — The global cryptocurrency market experienced one of its darkest days on October 10, 2025, when over $1.65 trillion in value was wiped out within 24 hours. The crash, triggered by U.S. President Donald Trump’s sudden imposition of 100% tariffs on Chinese imports and new restrictions on software exports, sent shockwaves across the global financial ecosystem — and Nigerian traders are among the hardest hit.
The dramatic sell-off liquidated more than $19 billion in leveraged positions worldwide, affecting nearly 1.6 million traders. Flagship coins took heavy blows — Bitcoin fell 8% to $111,000, losing half a trillion dollars in market value, while Ethereum plunged 12% to $3,778, dragging down altcoins like XRP and Solana in its wake.
Market capitalization dropped from $4.3 trillion to $3.74 trillion, marking the largest single-day decline in crypto history. Analysts blamed the rout on excessive institutional leverage, panic selling, and rising macroeconomic fears as the U.S. dollar strengthened amid tightening Federal Reserve policies.
“This isn’t just a crypto crash — it’s a ripple effect of global trade war tensions,” said Brian Strugats, head trader at Multicoin Capital.
Nigerian Traders Bear the Brunt
In Nigeria — Africa’s largest crypto market and second globally in adoption — the losses hit home hard. With over 32% of adults holding digital assets as a hedge against inflation and naira devaluation, the sudden downturn has shattered confidence among retail investors.
Across Lagos, Abuja, and Port Harcourt, traders woke up to devastated portfolios and frozen trading screens.
“I lost almost 70% of my portfolio overnight,” said Aisha Okon, a Lagos-based freelancer who invested ₦2 million in Bitcoin and Ethereum through Binance P2P. “It’s not just an investment — it was my backup plan against the falling naira.”
Before the crash, Nigeria’s crypto transaction volumes averaged $400 million monthly, driven largely by P2P trading, remittances, and inflation hedging. Platforms such as Paxful, Busha, and Yellowcard reported a brief surge in emergency transactions as traders scrambled for liquidity.
A History of Struggle and Regulation
Nigeria’s crypto community has battled shifting regulatory stances for years. After the Central Bank of Nigeria (CBN) banned bank-crypto transactions in 2021, trading shifted to underground P2P markets. The 2025 Investments and Securities Act briefly brought hope by recognizing crypto as a regulated asset class, but ongoing EFCC investigations into alleged “market manipulations” have dampened investor morale.
“We moved to crypto to escape high banking charges and a weak naira,” said Chinedu Eze, a trader from Abuja who lost over ₦1.5 million. “Now, politics in Washington is crashing our dreams.”
Social Media Reactions
The crash quickly dominated online discussions. On X (formerly Twitter), #NairaCryptoCrash trended as thousands of Nigerians shared their losses.
“From ATH dreams to zero. Nigeria’s youth built this market on hope — now it’s ashes,” wrote user @CryptoNaijaKing.
Some users urged calm, seeing long-term opportunity in the decline. “Buy the dip,” advised one trader on Nairaland. “Bitcoin always bounces back.” Others, however, decried crypto as a “Ponzi-like” distraction from tangible investments.
The Road Ahead
While Bitcoin has since stabilized around $112,000, uncertainty persists. Experts like Edul Patel, CEO of Mudrex, argue that such corrections often precede strong recoveries, noting that October dips have historically led to 20%+ rebounds.
Yet, for traders like Okon and Eze, optimism feels distant.
“Crypto was our escape from economic instability,” Okon told Coolnews Nigeria. “Now it feels like we’re trapped in it.”
As Nigeria continues to grapple with inflation, currency devaluation, and youth unemployment, the crypto meltdown underscores both the potential and peril of digital finance in an interconnected global economy.
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