This week’s top cryptocurrency stocks did better than the overall stock market, thanks to stable crypto prices.
The stock market was in turmoil for two days after President Donald Trump announced new tariffs April 2. As of Friday night:
- The S&P 500 closed down 6%
- The Nasdaq Composite Index fell by 5.8%.
- Dow Jones Industrial Average fell by more than 2200 points or 5.5%.
- Russell 2000 Index, an index of small cap stocks, fell by 4%.
The Nasdaq has fallen 22% since its high in December. Since its February high, the S&P is down about 17%.
During the past week, some crypto-related stocks performed better than other equities. For example, Strategy rose over 6.7%. Michael Saylor founded the company, which was formerly called MicroStrategy.
Coinbase, which is the largest crypto exchange in America, fell only 3%. Marathon Digital, Cipher Mining and Riot Platforms also dropped less than 5%.
These stocks did better than the S&P 500 and the Nasdaq 100 indices because Bitcoin (BTCEthereum and Bitcoin (ETHRippleXRPBinance Coin, Binance (BNBThe underlying structure of the ), however, remained relatively unaltered.
Bitcoin’s price has risen by 2,5% over the past five days. XRP is up by 2,7%. Ether, BNB and other major coins are still in the consolidation phase. In the past, these crypto-stocks have tracked Bitcoin’s performance and that of other major coins.
Larry Fink of Blackrock, who is the chief executive officer at the company, made a bullish comment that was likely the cause for Bitcoin’s strong performance. In his annual investor letter, Fink warned that the U.S. dollar Bitcoin was a major risk. He said that the US’s rising debt is a significant risk to its economy.
Bitcoin was also stable, as investors considered it an alternative asset to gold, which is the most well-known and popular safe haven asset. Its value has surged to record levels.
The crypto stocks are not subject to AI or tariffs
Crypto stocks also did well because they were not affected by the Artificial Intelligence industry.
Analysts are worried about the slowdown of the AI trend that drove the stock markets in recent years. The top AI companies like AMD NVIDIA SoundHound and have performed below the overall market.
This week, after news reports confirm that Microsoft was slowing its investments in data centers globally. Some analysts cautioned There is an excess of data centres compared with demand.
The crypto stocks have also held up because they are not as affected by Donald Trump’s tariff war. Tariffs on reciprocal goods will not impact these firms Due to the nature of their work. Strategy’s main business, for instance, is to accumulate Bitcoins, and its software service plays a small role.
The crypto stocks were stable after the betting odds on Paul Atkins becoming the next chairman of the Securities and Exchange Commission increased as Atkins was promoted from the banking panel.
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Source: crypto.news
