Anxiety over President Trump’s tariff twists and recent comments on the potential recession have caused Bitcoin, and companies otherwise adjacent to the cryptocurrency sector, to take a battering on Monday.
Coinbase Global (NASDAQ: COIN), which is America’s largest cryptocurrency exchange, worsened its 30 day drop of nearly 30 per cent. Meanwhile, Strategy (NASDAQ: MSTR), once called Microstrategy, dropped even further, shedding over 10 per cent over the past day.
Strategy is the largest corporate holder of Bitcoin with approximately USD$40 billion worth in its treasury. It’s also seen its shares drop about 23 per cent over the past month.
Bitcoin mining giant MARA Holdings (NASDAQ: MARA) has fallen more than 10 per cent in the past 24 hours and is now trading at $14.40 per share.
Other public Bitcoin miners, which hold significant amounts of BTC, are also down. Riot Platforms (NASDAQ: RIOT) has declined nearly 5 per cent today, CleanSpark Inc (NASDAQ: CLSK) has dropped about 3 per cent, and Hive Digital Technologies (NASDAQ: HIVE) has fallen over 10 per cent. Investors buy shares in public companies like Strategy and MARA to gain exposure to the crypto—specifically Bitcoin—market.
Strategy, previously focused on cloud software, now primarily securitizes Bitcoin by buying and holding the cryptocurrency.
Read more: US authorities release thousands of seized cryptominers
Read more: Trump names five cryptocurrencies to new U.S. strategic reserve
Trump keeps changing the time and scale of trade tariffs
Investors purchase shares to gain regulated exposure to the asset. Bitcoin and most cryptocurrencies dropped sharply on Monday after President Trump warned over the weekend that the U.S. economy faces “a period of transition.”
He also refused to rule out a potential recession. The new American leader has kept traders uncertain by frequently shifting the timing and scale of trade tariffs on major economies like China, Canada, and Mexico. As a result, the Nasdaq fell nearly 3.4 per cent on Monday.
Trump’s tariff threats have created uncertainty in global supply chains, slowing business investment and economic growth.
Trump’s tariff threats have impacted several industries beyond cryptocurrency. Manufacturing has suffered as higher import costs on raw materials like steel and aluminum have squeezed profit margins for companies in automotive, aerospace, and heavy machinery. U.S. automakers have warned that tariffs could lead to higher vehicle prices and job cuts.
Agriculture has also taken a hit, particularly soybean and pork producers, due to retaliatory tariffs from China. This has led to declining exports and financial strain on farmers.
Retailers and consumer goods companies have struggled with rising costs as tariffs on Chinese imports increase certain imports. These include electronics, clothing, and household goods. Companies like Walmart and Target have also warned that continued trade tensions could force them to raise prices.
