US crypto stocks slide as Trump's sweeping tariffs jolt markets
FILE PHOTO: Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
U.S. crypto stocks declined on Thursday after President Donald Trump's latest round of sweeping tariffs rattled investor confidence due to rising global trade tensions, sparking a sell-off in riskier assets.
Crypto exchange Coinbase Global fell about 7.7 per cent, while major bitcoin holder Strategy dropped 5.6 per cent. Among miners, MARA Holdings, Riot Platforms and Bitfarms slipped about 8.3 per cent, 8.7 per cent and 5 per cent, respectively.
The broad losses underscore the widespread fallout of the tariffs on multiple asset classes. Bitcoin, the biggest cryptocurrency, dropped 3.9 per cent, while ether dived 5.2 per cent.
Even though the Trump administration has signaled a willingness to embrace crypto and adopt a lighter approach to regulation, broader economic instability tied to the sector could still impact companies.
Marcin Kazmierczak, chief operating officer at blockchain firm RedStone, said the declines point to a growing correlation between digital assets and macroeconomic policy shifts.
"But protectionist policies that potentially weaken dollar hegemony could accelerate interest in decentralized alternatives over the medium-to-long term," he said.
Some analysts said the moves were less severe than other industries.
"The price action highlights crypto's hyper-democratic and borderless nature, allowing investors worldwide to hedge against the potential impact of macroeconomic uncertainties," said David Hernandez, crypto investment specialist at 21Shares.
Crypto exchange traded-funds may also attract some inflows from retail investors who will be hunting for opportunities, according to Marco Iachini, senior vice president of research​​ at Vanda Research.
However,​​ he said the size of the flow could reduce as things get a bit shaky.
