Bitcoin has plunged into its steepest fall in years, wiping out more than US$19 billion in leveraged trades and sending shockwaves through global and African markets alike. The cryptocurrency dropped more than 14 percent within hours, its largest single-day loss since 2022, before settling just above US$104,000 on Friday morning.
The sell-off, triggered by a cocktail of geopolitical tension, institutional selling, and market leverage, has reignited old fears about the fragility of the crypto market’s foundation.

What Sparked the Crash
According to Reuters and The Economic Times, the panic began after U.S.–China trade tensions flared again. Washington announced 100% tariffs on Chinese tech exports, including software and semiconductors, unsettling investors who had treated crypto as a hedge against global instability.
Within six hours, major institutional players, BlackRock, Binance, and Coinbase, reportedly dumped over US$1.1 billion in Bitcoin, according to The Economic Times. That sell-off cascaded across exchanges, triggering mass liquidations for traders using borrowed funds.
“This wasn’t just a correction; it was a margin wipe-out,” said Daniel Wekesa, a Nairobi-based blockchain analyst. “Retail traders were over-leveraged, and when big whales sold, the system collapsed on itself.”
The Biggest Liquidation in Crypto History
Investopedia described the drop as the largest single-day liquidation event in crypto history, as over-leveraged traders faced forced sell-offs across major platforms. Bitcoin’s decline dragged Ethereum and other altcoins with it, pushing total crypto market capitalization below US$3.8 trillion.
In Nairobi, trading activity on Yellow Card and Binance Kenya spiked overnight, with local traders rushing to convert holdings into stablecoins or cash out entirely.

Global Fear, Local Ripple
For African markets, where Bitcoin often serves as both investment and inflation hedge, the crash hit differently. Kenyan traders who had seen crypto as a safe refuge from the shilling’s slide were suddenly staring at double losses.
“The irony is painful,” said Faith Mumo, CEO of a Nairobi digital-assets firm. “People turned to Bitcoin to protect their savings from currency depreciation, and now they’ve lost value on both sides.”
Data from Chainalysis shows that Kenya, Nigeria, and South Africa together account for 70 percent of Sub-Saharan Africa’s crypto transactions, mostly peer-to-peer. The latest drop, analysts warn, could temporarily dampen adoption as smaller investors retreat to safety.
Why It Matters
While global markets were already volatile, the Bitcoin collapse underscores how deeply connected crypto has become to broader economic sentiment. When big money exits, the retail side, especially in emerging markets, feels the shockwaves hardest.
Financial strategist Dr. Wycliffe Mwangi, from the University of Nairobi, said the correction may shake speculative bubbles but could also strengthen the case for clearer regulation.
“Volatility is not the enemy, opacity is,” Dr. Mwangi said. “If African governments provide clear digital-asset frameworks, we can protect investors without suffocating innovation
Looking Ahead
Analysts now see Bitcoin hovering between US$95,000 and US$110,000 in the short term, with the next moves hinging on U.S. policy and market liquidity. Some optimists see this as a “healthy flush-out” that clears excess speculation before another leg upward. Others warn it could mark the start of a longer bear cycle.
For African traders, however, the message is simple: diversify, don’t over-leverage, and remember that digital gold can lose its shine overnight.