This week, cryptocurrency firms were hit hard by President Donald Trump’s sweeping tariff rollout. Market volatility sent shares prices tumbling as well as IPO plans.
Bitcoin: From Exchanges to BitcoinBTC) miners, crypto stocks suffered as much, if not more, than shares of other companies — despite the industry’s warm relationship with the US president.
Trump announced on April 2 that he would be imposing tariffs at least 10% of all imports to the United States, and adding further “reciprocal” Taxes are imposed on 57 nations.
Since then, major US stock indices — including the S&P 500 and Nasdaq — tumbled by roughly 10% as traders braced for a looming trade war.
Bitcoin Miners sell off after Trump tariff announcement. Source: Morningstar
Related: Bitcoin ‘decouples,’ stocks lose $3.5T amid Trump tariff war and Fed warning of ‘higher inflation’
Sale of Sharp Products
Crypto exchange Coinbase — a prominent ally of Trump during the November US elections — experienced a similarly severe sell-off, with its stock price dropping by roughly 12% during the same period, according to data Google Finance
The Bitcoin mining industry is also suffering. The CoinShares Crypto Miners ETF (WGMI) — which tracks a diverse basket of Bitcoin mining stocks — has lost roughly 13% of its value since immediately prior to Trump’s April 2 announcement, according to data Morningstar
It was not just Strategy that suffered. Google Finance reports that its share price fell by approximately 6% in response to the news. data showed.
According According to Reuters the investment bank JPMorgan increased its odds that a global recession will occur in 2025 from 40 to 60.
“Disruptive U.S. policies have been recognized as the biggest risk to the global outlook all year,” JP Morgan has reportedly stated.
“The effect … is likely to be magnified through (tariff) retaliation, a slide in U.S. business sentiment and supply-chain disruptions.”
Shares of Strategy also fell this week. Source: Google Finance
IPO delays
Stock price fluctuations are not the only impact of US Tariffs. Stablecoin issuing Circle has been reported to have a stablecoin. paused plans for a 2025 IPOThe market is undergoing turbulence, according to.
Circle has been a popular topic in The Wall Street Journal. “waiting anxiously” After filing the application to go public, April 1, you must take further steps before proceeding.
It is among several companies — including fintech Klarna and ticketing service StubHub — reportedly considering altering or shelving IPO plans.
Bitcoin is one exception, as some analysts claim. finally “decoupling” from the broader market.
Bitcoin’s price at the spot has remained above $82,000 even though US equity markets have collapsed.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
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Source: cointelegraph.com
