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US crypto stocks slide as Trump's sweeping tariffs jolt markets
By Niket Nishant
(Reuters) - U.S. crypto stocks declined on Thursday after President Donald Trump's latest round of sweeping tariffs rattled investor confidence due to rising global trade tensions, sparking a sell-off in riskier assets.
Crypto exchange Coinbase Global ( COIN ) fell about 7.7%, while major bitcoin ( BTC-USD ) holder Strategy ( MSTR ) dropped 5.6%. Among miners, MARA Holdings, Riot Platforms and Bitfarms slipped about 8.3%, 8.7% and 5%, respectively.
The broad losses underscore the widespread fallout of the tariffs on multiple asset classes. Bitcoin, the biggest cryptocurrency, dropped 3.9%, while ether dived 5.2%.
Even though the Trump administration has signaled a willingness to embrace crypto and adopt a lighter approach to regulation, broader economic instability tied to the sector could still impact companies.
Marcin Kazmierczak, chief operating officer at blockchain firm RedStone, said the declines point to a growing correlation between digital assets and macroeconomic policy shifts.
"But protectionist policies that potentially weaken dollar hegemony could accelerate interest in decentralized alternatives over the medium-to-long term," he said.
Some analysts said the moves were less severe than 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, crypto investment specialist at 21Shares.
Crypto exchange traded-funds may also attract some inflows from retail investors who will be hunting for opportunities, according to Marco Iachini, senior vice president of research​​ at Vanda Research.
However,​​ he said the size of the flow could reduce as things get a bit shaky.