Cryptocurrency companies sensed heat this week from US President Donald Trump’s sweep tariff rollout as market turbulence caused stock prices to overturn and blocked initial public offerings (IPO) plans.
From Bitcoin (BTC) miners from exchanges, crypto stocks were more and more than other companies’ stocks despite their warm industry relationship with the US president.
On April 2, Trump announced that he would place a tariff of at least 10% in the United States on virtually all imports, adding “mutual” tariffs to around 57 countries.
Since then, major US stock indices, including the S&P 500 and Nasdaq, have fallen by about 10% in preparation for traders’ looming trade wars.
The Bitcoin Miner was sold on Trump’s Customs News. Source: Morning Star
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Sharp Seller Off
According to Google Finance data, Crypto Exchange Coinbase also experienced a severe sale in Trump’s prominent allies during the November election, with shares falling by around 12% over the same period.
Bitcoin miner has also been a hit. According to data from Morningstar, Coinshare’s crypto miner ETF (WGMI) tracks a diverse basket of Bitcoin mining stocks.
Even strategy, one of the best performing stocks of 2024, was not immunized. Its stock price has fallen by about 6% in the news, indicated by Google Finance Data.
Investment bank JPMorgan has increased its estimated probability of a global economic recession in 2025 to 60% from the previous 40%, according to Reuters.
“Destroying US policy is recognized as the biggest risk to the global outlook all year round,” JP Morgan said.
“The effect could be magnified through a slide of (tax) retaliation, US business sentiment and supply chain disruption.”
Strategy stocks also fell this week. Source: Google Finance
IPO delay
The impact of US tariffs is not limited to stock price volatility. The Stablecoin Issuer Circle reportedly suspended plans for the 2025 IPO, citing turbulence in the market.
According to the Wall Street Journal, the circle “waits anxiously” after submitting it to make the company public on April 1, before taking further action.
This is one of several companies, including Fintech Klarna and ticketing service StubHub, and is reportedly considering changes to IPO plans or shelves.
One exception may be Bitcoin itself. Some analysts say it’s ultimately “separation” from the wider market.
Even with the US stock market collapse, Bitcoin spot prices are still above $82,000 this week.
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