Bitcoin, Crypto Stocks Sink on Concerns Over Impact of Trump Tariffs
Bitcoin slid to about $95,000 Sunday night into Monday morning, while a number of cryptocurrency-related stocks also sank in premarket trading as the market reacts to the potential impact of the new tariffs rolled out by the Trump administration over the weekend.
Shares of crypto exchanges, mining companies, and others in the industry like Coinbase (COIN), Robinhood (HOOD), MicroStrategy (MSTR), Mara Holdings (MARA), and Riot Platforms (RIOT) each declined 5% or more Monday morning.
U.S. President Donald Trump implemented his long-threatened tariffs on Saturday, placing new 25% tariffs on all goods from Canada and Mexico, and an additional 10% on everything coming from China. Each of the countries has said they are planning to respond, including with potential new tariffs of their own.
If tariffs have their predicted impact of raising prices, that continued inflation could prevent the Federal Reserve from continuing to cut interest rates, hurting riskier, non-interest generating assets like Bitcoin (BTCUSD). Markets also seem pessimistic about the result of the tariffs, as stock futures declined sharply early Monday.
Bitcoin and some of the related stocks have rallied since Trump's election win in November, as the industry expected a friendlier regulatory environment for the crypto industry under the new president. Bitcoin peaked at over $109,000 ahead of Trump's inauguration last month, but Monday would mark the asset's fourth straight day of decline.
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