U.S. Crypto Stocks Retreat Amid Global Trade Turmoil Linked to Trump Tariffs
By Niket Nishant
April 3, 2025
In a marked response to rising global trade tensions, U.S. cryptocurrencies saw a notable decline on Thursday following President Donald Trump’s announcement of sweeping tariffs that rocked investor confidence across various markets. This sell-off particularly impacted riskier assets, including those within the cryptocurrency sector.
Major Declines in Crypto Stocks
Leading the downturn was Coinbase Global (COIN), which experienced a decrease of approximately 7.7%. Other significant players in the digital asset space were also affected; for instance, MicroStrategy, a major holder of Bitcoin, saw its stock plunge by 5.6%. Among the cryptocurrency mining companies, Marathon Digital Holdings (MARA), Riot Platforms (RIOT), and Bitfarms witnessed declines of around 8.3%, 8.7%, and 5%, respectively.
The bearish trend extended beyond stocks, as major cryptocurrencies also took a hit. Bitcoin, the largest digital currency by market capitalization, fell by 3.9%, while Ethereum, another significant player, plummeted by 5.2%.
Tariffs Impacting Multiple Asset Classes
The sweeping tariffs, aimed at countering foreign competition, have instigated a broader market reaction, underscoring how international trade policies can influence various asset classes—not just commodities and traditional stocks, but also digital currencies. Marcin Kazmierczak, Chief Operating Officer of blockchain firm RedStone, commented on these dynamics, stating that the recent declines illustrate a growing correlation between digital assets and macroeconomic policy changes.
Kazmierczak pointed out that while protectionist policies might temporarily weaken the dominance of the dollar, they could also accelerate interest in decentralized financial alternatives over the longer term.
Analysts Weigh In on the Market Reaction
Despite the significant drops, some analysts noted that the impact on the cryptocurrency market has not been as severe compared to traditional industries. David Hernandez, a crypto investment specialist at 21Shares, remarked that the recent price actions reflect the cryptocurrency market’s inherently hyper-democratic and borderless nature. This characteristic allows investors globally to hedge against macroeconomic uncertainties.
Meanwhile, Marco Iachini, senior vice president of research at Vanda Research, indicated that cryptocurrency exchange-traded funds might attract inflows from retail investors seeking opportunities amid the volatility—though he cautioned that the volume of such investments might decrease during periods of heightened market instability.
Looking Ahead
The unfolding events signal a complex landscape for cryptocurrencies and their related equities as external economic pressures continue to challenge stability in the sector. While the current tariff implementation has led to significant short-term declines, ongoing developments in global trade and economic policy will likely shape the trajectory of the cryptocurrency market in the near future.
As the situation evolves, investors remain alert, navigating the intertwined relationships between government actions, market sentiment, and the burgeoning field of digital currencies.
Reporting by Niket Nishant in Bengaluru; Edited by Arun Koyyur
Thomson Reuters Trust Principles
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