Tariff Tumult Tanks Crypto Stocks
President Trump's sweeping tariff announcement sent shockwaves through the cryptocurrency market this week, causing significant declines in share prices and prompting several companies to postpone initial public offerings (IPOs).
Market Turmoil Impacts Crypto Stocks
The impact was widespread, affecting various crypto firms, from exchanges to Bitcoin miners. Coinbase, a previously strong Trump supporter, saw its stock price fall by approximately 12%. The CoinShares Crypto Miners ETF (WGMI) experienced an even steeper drop of around 13%. Even MicroStrategy (MSTR), a top performer in 2024, saw its share price decrease by roughly 6%.
This downturn reflects the broader market reaction to the tariffs. Major US indices, such as the S&P 500 and Nasdaq, plummeted by approximately 10%, as traders anticipated a potential trade war.
JPMorgan, in response, raised its prediction for a global recession in 2025 to 60%, citing disruptive US policies as the primary risk factor. The bank noted the potential for magnified effects through retaliation, decreased business sentiment, and supply chain disruptions.
IPO Delays Amid Uncertainty
The market volatility isn't just impacting existing crypto companies; it's also causing delays in planned IPOs. Circle, a prominent stablecoin issuer, has reportedly paused its 2025 IPO plans due to market uncertainty, despite filing to go public on April 1st.
Other companies, including Klarna and StubHub, are reportedly considering similar delays or modifications to their IPO strategies.
Bitcoin's Decoupling
Interestingly, Bitcoin appears to be decoupling from the broader market downturn, holding above $82,000 despite the significant drop in US equities. This divergence suggests Bitcoin may offer a degree of resilience in times of macroeconomic uncertainty.
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