Despite Trump’s pro-crypto stance, the market reaction shows digital assets remain vulnerable to macroeconomic shocks
U.S. crypto stocks fell sharply on Thursday following President Donald Trump’s sweeping new tariffs, sparking a broader risk-off sentiment in global markets.
Coinbase (COIN) dropped 4%, MicroStrategy (MSTR) slipped 3%, and leading miners such as Marathon Digital (MARA) and Riot Platforms (RIOT) plunged between 4% and 6% in premarket trading.
According to Coingeko, the declines echoed a pullback across major cryptocurrencies over the past day, with Bitcoin falling 2.3% and Ether dropping 3.3%, as fears of renewed trade tensions rattled investors.
“The price action highlights crypto’s hyper-democratic and borderless nature, allowing investors worldwide to hedge against macroeconomic uncertainties,” said David Hernandez, crypto investment specialist at asset manager 21Shares, in an interview with Reuters.
Tariff escalation adds pressure to global markets already on edge
U.S. President Donald Trump unveiled his latest batch of sweeping new trade policies on Wednesday, introducing a baseline 10% tariff on all imports alongside a system to mirror foreign trade barriers.
“The American people have been taken advantage of for too long,” Trump said during his televised address. “This is about rebalancing trade and bringing jobs back home.”
The initiative, branded “Liberation Day,” signals a major shift in U.S. trade strategy toward aggressive protectionism.
In response, U.S. equity futures turned lower in early trading as investors began to assess the potential ripple effects across inflation, supply chains, and corporate margins.
The tech-heavy Nasdaq was hit particularly hard, reflecting the sector’s exposure to global manufacturing inputs.
Meanwhile, the U.S. dollar strengthened, and gold edged higher, signaling a cautious shift toward defensive positioning amid renewed macro uncertainty.
Crypto sector braces for more turbulence as investors weigh risk exposure
Although Thursday’s declines were sharp, they highlighted a deeper vulnerability of the cryptocurrency sector: its increasing sensitivity to macroeconomic shocks.
For miners and stock exchanges, policy-driven volatility adds uncertainty to earnings prospects and increases pressure on balance sheets already tied to asset prices.
Recent tailwinds from institutional inflows and a friendlier U.S. regulatory stance supported digital assets during the first quarter.
However, widespread selling following Trump’s tariff announcement has highlighted how quickly global risk sentiment can override sector-specific momentum.
According to Marco Iachini, senior research analyst at market intelligence firm Vanda Research, crypto ETFs may still see opportunistic buying by retail investors, but such inflows are likely to slow if market volatility persists.
