US Crypto Stocks Experience Decline as Bitcoin Reaches New Low for 2025
By Niket Nishant, April 7, 2025
In a troubling development for the cryptocurrency sector, U.S.-listed shares of various crypto companies saw a significant decline on Monday as Bitcoin plummeted, hitting its lowest mark of 2025. This drop is largely attributed to the rising tensions over tariffs and an escalating fear of a potential global trade war, leading investors to retreat from riskier assets across the board.
Bitcoin, the leading cryptocurrency, fell by as much as 5.5% during trading, contributing to a broader sell-off of cryptocurrency stocks. Notably, the investment firm MicroStrategy (MSTR.O), which has substantial Bitcoin holdings, experienced a staggering decline of more than 10%, erasing much of its gains from the previous trading session. Similarly, Coinbase (COIN.O) witnessed a 5% drop, while Robinhood (HOOD.O) fell sharply by as much as 14% following a price target reduction from Barclays. The bank expressed concerns that the current turmoil in the crypto market could adversely impact Robinhood’s transaction revenue in the current quarter, although it later regained some losses in the afternoon.
These declines represent a significant retreat for the crypto sector, which had previously experienced a swell of optimism following the 2024 U.S. presidential election, where former President Donald Trump had promised to position the United States as the "crypto capital of the planet." As Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted, “High risk-off sentiment is canceling out optimism about a more favorable environment for coins.”
While the new tariff levies do not directly target cryptocurrency firms, they have contributed to an overall pessimistic atmosphere that has begun to affect sentiment across financial markets. Billionaire investor Bill Ackman recently warned that the U.S. economy might be on the brink of an "economic nuclear winter," amplifying concerns regarding the economic climate.
This downturn raises questions about Bitcoin’s reputation as a safe haven asset during periods of market turbulence. Advocates have often positioned Bitcoin as a hedge against financial fluctuations, and Trevor Koverko, a prominent crypto entrepreneur, commented, “Crypto is not that unique from a market asset class perspective. It is a good old-fashioned risk asset. It has to decouple if it’s going to be useful.”
The challenges facing the cryptocurrency sector are becoming increasingly evident, as the market grapples with a host of uncertainties fueled by macroeconomic factors and regulatory concerns. Investors will be closely monitoring upcoming developments to gauge future movements in both the cryptocurrency and broader financial markets.
Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri
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