Crypto stocks fall following US tariff escalation
US-listed cryptocurrency stocks dropped on Thursday following a fresh round of tariffs announced by President Donald Trump, adding to concerns over global trade tensions and triggering a broader pullback in risk assets.
Shares of Coinbase Global declined by 7.7%, while MicroStrategy, a prominent holder of bitcoin, lost 5.6%. Crypto mining organisations also saw notable declines: MARA Holdings fell 8.3%, Riot Platforms dropped 8.7%, and Bitfarms dropped 5%.
The impact extended beyond equities. Bitcoin slid 3.9% and ether declined 5.2%, underscoring how sensitive digital assets remain to shifts in macroeconomic conditions.
Markets overall reacted sharply. The S&P 500 posted its steepest single-day loss since 2020. Although the Trump administration has taken a more supportive stance toward cryptocurrencies, broader concerns over trade policy and economic uncertainty appeared to outweigh any perceived regulatory advantages.
“Bitcoin moves at the intersection of narrative, liquidity, and leverage,” said Ben Kurland, CEO of crypto research firm DYOR. “Right now, it’s mostly trading like a high-beta macro asset, tracking real yields, rate expectations, and dollar strength.”
Kurland added that bitcoin’s response was more about global financial signals than crypto-specific developments. “When real rates dip and the dollar softens, bitcoin breathes,” he said.
Over the past month, bitcoin has remained within the $80,000 to $90,000 range, largely moving in tandem with equity markets in the absence of direct crypto market drivers.
According to Marcin Kazmierczak, chief operating officer at blockchain firm RedStone, the recent pullback highlights how digital assets are increasingly influenced by macroeconomic events. “But protectionist policies that potentially weaken dollar hegemony could accelerate interest in decentralised alternatives over the medium-to-long term,” he said.
Others noted that the response from crypto markets, while sharp, was more contained than reactions seen in some traditional sectors. “The price action highlights crypto’s hyper-democratic and borderless nature, allowing investors worldwide to hedge against the potential impact of macroeconomic uncertainties,” said David Hernandez, a crypto investment specialist at 21Shares.
Some analysts also expect retail activity to continue through crypto-linked exchange-traded funds. Marco Iachini, senior vice president of research at Vanda Research, noted that while there may be inflows from retail investors looking for opportunity, “the size of the flow could reduce as things get a bit shaky.”
(Photo by Unsplash)
See also: EU warns of financial risks from US cryptocurrency integration
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