Business
Crypto Stocks Drop Following Trump’s New Tariffs
By Benjamin Abioye
U.S. crypto stocks experienced a decline on Thursday after President Donald Trump announced new tariffs on several countries.
This move has shaken investor confidence due to rising global trade tensions, leading to a sell-off in riskier assets, including cryptocurrencies.
In premarket trading, major U.S. crypto stocks saw notable drops. Crypto exchange Coinbase Global fell approximately 4%, trading at $82,000. Other significant holders of Bitcoin, like Strategy, saw a 3% decrease, while mining companies such as MARA Holdings, Riot Platforms, and Bitfarms lost between 4% and 6%.
The overall decline in crypto assets reflected the broader impact of the tariffs on various asset classes. Bitcoin, the largest cryptocurrency, dropped by 2.3%. Ethereum (ETH) also experienced a significant loss, falling by 3.3%, trading at $1,823.34. XRP lost 2.21%, settling at $2.05, and Solana (SOL) saw even steeper losses, shedding over 9% at one point. Prior to this drop, Bitcoin had been trading around $85,000.
Despite the Trump administration signaling a more lenient stance on crypto regulations, the broader economic instability tied to the tariffs could still have negative effects on the sector. However, some analysts believe the damage was less severe compared to 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, a crypto investment specialist at 21Shares.
Analysts also noted that crypto exchange-traded funds (ETFs) could attract more inflows from retail investors seeking opportunities in the volatile market. Marco Iachini, senior vice president of research at Vanda Research, said that while the flow of investment could be strong, it might decrease as uncertainty grows.
Trump’s tariffs are described as one of the most extensive in U.S. history. They include a 10% baseline tax on all imports and a 25% levy on foreign-made cars. Additionally, reciprocal duties were set at 50% of the rates imposed on American exports by other nations.
This proposal affects 185 countries, including Nigeria, which will now face a 14% tariff on exports to the U.S., compared to the 27% tariff on U.S. imports from Nigeria. Between 2015 and 2024, Nigeria’s trade with the U.S. amounted to N31.1 trillion, with imports totaling N16.4 trillion, representing 8.7% of Nigeria’s total exports.
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