$1.65 Trillion Crypto Meltdown Rocks Global Markets as Trump’s Tariffs Trigger Panic — Nigeria Hit Hardest
By Trend Brio News | October 12, 2025
LAGOS, Nigeria – The global cryptocurrency market suffered its worst single-day collapse in history on October 10, 2025, wiping out a staggering $1.65 trillion in value following U.S. President Donald Trump’s sudden imposition of 100% tariffs on Chinese imports and tough new export restrictions on key software technologies.
The shock announcement sparked widespread panic across global exchanges, leading to the liquidation of over $19 billion in leveraged positions and affecting more than 1.6 million traders worldwide.
Bitcoin plunged 8% to $111,000, losing about $500 billion in market value, while Ethereum crashed 12% to $3,778, dragging altcoins like XRP and Solana sharply lower. Overall, the total crypto market capitalization tumbled from $4.3 trillion to $3.74 trillion, marking an unprecedented market rout.
Analysts blamed institutional over-leverage and escalating U.S.-China trade tensions for the market shock. “This isn’t just a crypto event—it’s a symptom of broader trade war contagion,” warned Brian Strugats, head trader at Multicoin Capital.
Nigeria’s Crypto Hope Shattered
In Nigeria, one of the world’s fastest-growing crypto markets, the crash hit particularly hard. With over 32% of Nigerians reportedly owning cryptocurrency—second highest globally—the sell-off wiped out savings and shattered confidence across the country’s vibrant trading community.
“I woke up to my portfolio down 70%. It’s not just money—it’s my escape plan,” lamented Aisha Okon, a 28-year-old Lagos-based graphic designer who invested over 2 million naira in Bitcoin and Ethereum to hedge against naira inflation.
Nigeria’s crypto economy had thrived amid chronic naira devaluation and inflation above 34%, with peer-to-peer (P2P) trading volumes reaching $400 million monthly before the crash. Platforms like Binance P2P, Paxful, and Yellowcard saw trading spikes of over 140% as desperate traders rushed to liquidate assets.
From Policy Whiplash to Financial Pain
The turmoil also exposed the fragility of Nigeria’s crypto ecosystem, which has battled years of regulatory uncertainty. After the Central Bank of Nigeria’s 2021 ban on bank-crypto transactions, traders shifted to underground P2P networks. The 2025 Investments and Securities Act finally legitimized digital assets, sparking optimism—until now.
“We turned to crypto because banks charge 20% on transfers, and the naira loses 24% yearly,” said Chinedu Eze, a trader from Abuja who lost 1.5 million naira in the meltdown. “Now, Trump’s tariffs hit us hardest—our dollar-pegged hopes evaporated overnight.”
Social Media Erupts in Despair
Across social platforms, frustration boiled over. The hashtag #NairaCryptoCrash trended on X (formerly Twitter) as devastated investors shared stories of ruin. “From ATH dreams to zero. Nigeria’s youth built this market on hope—now it’s ashes,” one user wrote.
Glimmer of Hope?
Despite the devastation, some analysts see opportunity. Edul Patel, CEO of Mudrex, noted that “October corrections often precede strong rallies,” urging patience among long-term holders.
Yet for many Nigerian investors, optimism feels distant. “Crypto promised freedom from naira woes,” Okon said quietly. “Instead, global politics chained us tighter.”
As markets struggle to stabilize, Bitcoin hovers near $112,000, and Nigerian traders are shifting toward stablecoins like Tether (USDT) for refuge. But with trade wars intensifying and domestic regulations tightening, the shockwave may leave lasting scars on a generation that once saw crypto as its path to financial independence.
