Bitcoin and Crypto Stocks Decline Following Trump’s Tariff Announcement
April 2, 2025, 06:39 PM EDT | By David Marino-Nachison
The cryptocurrency market experienced a significant downturn on Wednesday following the announcement of new tariffs by former President Donald Trump, which sent ripples through global financial markets. Bitcoin, the leading cryptocurrency, saw its value plummet from approximately $88,000 to just above $83,000 shortly after the tariffs were made public.
Tariff Announcement Sparks Market Concerns
In a statement delivered from the Rose Garden of the White House, President Trump unveiled a plan for reciprocal tariffs targeting a wide range of countries, affecting many of the U.S.’s major trading partners. While U.S. stocks experienced some gains throughout the day, they sharply fell in after-hours trading as investors reacted to the unexpected trade policies.
The tech sector, a critical driver of market performance, was particularly hard hit. The "QQQ" ETF, which tracks the tech-heavy Nasdaq 100 index, dropped nearly 4% in after-hours trading. This sell-off reflects broader concerns regarding economic stability and global trade relations, raising anxiety among investors about potential impacts on profitability for technology firms and related industries.
Impact on Cryptocurrency Stocks
The adverse reaction extended beyond cryptocurrencies to include several stocks tied to the crypto sector. Notably, shares of MicroStrategy (MSTR)—a prominent buyer of Bitcoin—declined by roughly 7% in after-hours trading. Other notable declines included Coinbase Global (COIN), down 6%, and Robinhood (HOOD), which fell about 9%.
The market’s bleak outlook reflects apprehension over the tariffs’ potential to disrupt trade and economic growth. As risk assets continued their downward trend, many investors opted to pull back, signaling a cautious stance in the face of uncertainty.
Analyst Insights
The rapid decline in Bitcoin and associated crypto stocks serves as a reminder of the volatility inherent in both the cryptocurrency and stock markets. Analysts warn that developments like tariff announcements can provoke swift reactions, particularly among speculative investments. As policymakers implement these trade measures, the effects on economic indicators and corporate earnings will likely remain a focal point for market participants in the coming days.
As the situation unfolds, investors will be keenly monitoring both the market’s performance and further statements from government officials regarding trade policies and their implications for the broader economy.
For continued coverage and updates on the cryptocurrency market and stock performance, investors can rely on trusted financial news sources to stay informed about changing dynamics.
Share this article:
