Bitcoin Slides Following Trump’s Tariff Announcement; Crypto Stocks Retreat
By David Marino-Nachison
April 3, 2025 – Bitcoin, the leading cryptocurrency, saw a significant decline on Thursday after President Donald Trump announced a new set of tariffs, sending shockwaves through global markets and dampening investor appetite for riskier assets. The price of Bitcoin fell below $82,000 before stabilizing slightly above that threshold.
The announcement, made late Wednesday, has unsettled investors, further extending Bitcoin’s retreat from its recent highs. This marked a notable drop from values nearing six digits experienced as recently as February. The surge earlier in the year was fueled by optimism surrounding cryptocurrency following Trump’s election. However, the current market is feeling the impact of geopolitical tensions and an uncertain economic outlook, prompting many to rethink their investments in volatile sectors such as cryptocurrency.
In addition to Bitcoin’s decline, crypto-related stocks also witnessed substantial losses. MicroStrategy, now rebranded as Strategy (NASDAQ: MSTR), saw its shares decrease by more than 7%. Major cryptocurrency exchange operator Coinbase Global (NASDAQ: COIN) fell close to 7%, while trading platform Robinhood Markets (NASDAQ: HOOD) experienced a decrease of about 9%. Crypto mining firm Marathon Digital Holdings (NASDAQ: MARA) faced an even steeper decline, seeing its stock fall by more than 8%.
The broader cryptocurrency market has not been spared from this downturn. According to CoinMarketCap, the total market capitalization of all cryptocurrencies dropped to approximately $2.6 trillion, marking a 6% decrease in just 24 hours. This shift underscores ongoing market volatility and the potential risks associated with holding cryptocurrency assets in an environment characterized by fluctuating tariffs and global trade tensions.
Investors are now closely monitoring the situation as they reevaluate their strategies amid this evolving landscape. With economic uncertainty growing, many are striving to safeguard their investments while assessing which sectors are poised for recovery in the scramble that often follows significant policy announcements from influential political figures.
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