U.S. Crypto-Linked stocks decline as Bitcoin hits new 2025 low amid escalating trade tensions

Amid escalating trade tensions initiated by President Donald Trump’s recent tariff announcements, U.S. stocks associated with cryptocurrencies have experienced notable declines. This downturn mirrors a significant drop in Bitcoin’s value, which fell by up to 5.5%, reaching its lowest point in 2025.​

Impact on Crypto-Related Stocks:

• MicroStrategy (MSTR): Holding substantial Bitcoin assets, MicroStrategy’s shares declined over 10%, erasing much of the previous session’s gains.​
  
• Coinbase (COIN): The cryptocurrency exchange saw its stock fall by 5%.​
  
• Robinhood (HOOD): Shares plummeted up to 14% following a price target reduction by Barclays, citing concerns that market turbulence in cryptocurrencies could negatively impact the online brokerage’s revenue this quarter.​

Cryptocurrency Market Performance:

• Bitcoin (BTC): As of 2:34 PM BRT, Bitcoin traded at $78,459, down 0.4%, marking a 16% decline year-to-date.​
  
• Ethereum (ETH): The second-largest cryptocurrency decreased by 0.8%, trading at $1,561 during the same period.​

Investor Sentiment:

The recent tariff escalations have heightened fears of a global trade war, leading to a broad sell-off in risk assets, including cryptocurrencies. Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, noted that the high-risk sentiment is overshadowing optimism regarding a more lenient environment for digital currencies.​

Although not directly targeted by the new tariffs, cryptocurrency companies are feeling the ripple effects as intensified trade barriers undermine investor confidence across markets. Billionaire investor Bill Ackman warned that the U.S. might be heading toward an “economic nuclear winter.”​

This decline also challenges the perception of Bitcoin as a safe-haven asset during market turbulence, a role long advocated by its proponents.