U.S. Crypto Stocks Plummet in Response to Trump’s Tariff Announcement
In premarket trading on Thursday, U.S. crypto stocks took a nosedive following President Donald Trump’s announcement of sweeping tariffs on various countries. This move has sent shockwaves through the investment community, leading to a sell-off of riskier assets as global trade tensions continue to escalate.
Leading crypto exchange Coinbase Global saw a significant decline of about 4%, bringing its value down to $82,000. Similarly, major bitcoin holder Strategy experienced a 3% drop. Mining stocks were also heavily affected, with MARA Holdings, Riot Platforms, and Bitfarms losing around 4%, 5%, and 6% respectively.
The impact of the tariffs was felt across multiple asset classes, with Bitcoin, the largest cryptocurrency, falling by 2.3% and Ethereum experiencing a 3.3% dip. Ethereum (ETH) saw a loss of 2.96%, trading at $1,823.34, while XRP dropped by 2.21%, settling at $2.05. Solana (SOL) faced even steeper losses, shedding over 9% at one point.
Prior to the recent downturn, Bitcoin (BTC) was trading at around $85,000.
Despite the Trump administration’s relatively positive stance on crypto regulation, the broader economic instability linked to the sector is still causing concern among investors. However, analysts have noted that the impact on crypto assets seems to be less severe compared to other industries.
“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, in a note to Reuters.
Marco Iachini, senior vice president of research at Vanda Research, suggested that crypto exchange-traded funds could become more attractive to retail investors seeking opportunities. However, he warned that the flow of investments could dwindle if the market becomes increasingly unstable.
Trump’s tariffs, which are among the most far-reaching in U.S. history, include a 10% baseline tax on all imports, a 25% levy on foreign-made cars, and reciprocal duties set at 50% of the rates imposed by other nations on American exports.
This proposal affects 185 countries, including Nigeria, which now faces a 14% tariff on its exports to the U.S., in contrast to the 27% tariff imposed by the U.S. on imports from Nigeria.
According to data from the Nigerian Bureau of Statistics (NBS), between 2015 and 2024, Nigeria’s trade with the U.S. totaled N31.1 trillion, with imports reaching N16.4 trillion, accounting for 8.7% of the total trade volume.
