U.S. crypto stocks experienced a decline in premarket trading on Thursday following President Donald Trump’s announcement of extensive tariffs on foreign countries, sparking concerns about escalating global trade tensions and leading to a sell-off in riskier assets.
Crypto exchange Coinbase Global saw a drop of approximately 4%, trading at $82,000, while prominent bitcoin holder Strategy dropped by 3%. Mining stocks also suffered, with MARA Holdings, Riot Platforms, and Bitfarms falling around 4%, 5%, and 6%, respectively.
The broader market reaction reflected the widespread impact of these new tariffs across various asset classes. Bitcoin, the largest cryptocurrency, lost 2.3%, while ether fell by 3.3%, and XRP dipped 2.21% to $2.05. Solana experienced even heavier losses, shedding over 9% at one point.
Before the latest decline, Bitcoin was trading around $85,000.
Despite President Trump’s administration signaling an openness to cryptocurrency and a more relaxed approach to regulation, the increasing global economic instability still poses risks to the sector. However, some analysts suggested that the impact on crypto might not be as severe as in other industries.
David Hernandez, a crypto investment specialist at 21Shares, told Reuters that the recent price action highlights the borderless nature of cryptocurrency, allowing investors worldwide to hedge against macroeconomic uncertainties.
Marco Iachini, senior vice president of research at Vanda Research, noted that crypto exchange-traded funds (ETFs) might attract retail investor inflows as they look for opportunities, though he cautioned that the size of these investments could decrease as market conditions become more volatile.
Trump’s new tariffs, regarded as some of the most extensive in U.S. history, include a 10% baseline tax on all imports, a 25% tariff on foreign-made cars, and reciprocal duties set at 50% of the rates imposed on American exports by other nations. The proposal affects 185 countries, including Nigeria, where exports to the U.S. will now face a 14% tariff, compared to the 27% tariff imposed by the U.S. on its imports from Nigeria.
Between 2015 and 2024, Nigeria’s trade with the U.S. amounted to a combined total of N31.1 trillion, with imports accounting for N16.4 trillion, or 8.7% of Nigeria’s total global exports, according to data from the Nigerian Bureau of Statistics (NBS).
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