U.S. crypto stocks fell in premarket trading on Thursday after President Donald Trump criticized sweeping tariffs on various countries. The announcement has shaken investor confidence amid escalating global trade tensions, leading to a sell-off in riskier assets.
Crypto exchange Coinbase Global saw a decline of about 4%, dropping to $82,000, while major bitcoin holder Strategy lost 3%. Among miners, MARA Holdings, Riot Platforms, and Bitfarms saw losses of approximately 4%, 5%, and 6%, respectively.
The broad market losses reflect the widespread impact of the tariffs on multiple asset classes. Bitcoin, the largest cryptocurrency, dropped 2.3%, while ether fell 3.3%. Ethereum (ETH) was down 2.96%, trading at $1,823.34, and XRP dropped 2.21%, settling at $2.05. Solana (SOL) experienced more severe losses, shedding over 9% at one point.
Before the latest dip, Bitcoin was trading around $85,000. While the Trump administration has shown a willingness to support crypto and adopt a more relaxed regulatory stance, broader economic instability linked to trade tensions could still negatively impact crypto companies.
Some analysts, however, suggested that the impact on crypto was less severe compared to other industries. “The price action highlights crypto’s hyper-democratic and borderless nature, allowing investors globally to hedge against the potential impact of macroeconomic uncertainties,” said David Hernandez, a crypto investment specialist at 21Shares, in a note to Reuters.
Crypto exchange-traded funds (ETFs) could also attract retail investors seeking opportunities, according to Marco Iachini, senior vice president of research at Vanda Research. However, he noted that the flow into these ETFs might decrease if market conditions become more unstable.
Trump’s tariffs, among the most extensive ever implemented by the U.S., include:
A 10% baseline tax on all imports.
A 25% levy on foreign-made cars.
Reciprocal duties set at 50% of the tariffs imposed on American exports by other countries.
The proposal affects 185 countries, including Nigeria, whose exports to the U.S. will now face a 14% tariff, compared to the 27% tariff the U.S. has imposed on its imports from Nigeria. Between 2015 and 2024, Nigeria’s trade with the U.S. amounted to N31.1 trillion, with imports totaling N16.4 trillion, accounting for 8.7% of Nigeria’s global exports, according to the Nigerian Bureau of Statistics (NBS).
