Market Turmoil: Impact on Crypto and Stocks
Recent turmoil in the cryptocurrency markets has reverberated through the stock prices of companies closely tied to the sector. The losses experienced in U.S. futures are indicative of a broader decline in equities, which historically influences the price of bitcoin (BTC), often leading it to mirror the movements of U.S. stock markets.
The S&P 500 futures have dropped by 1.4%, while Dow Jones futures fell by 1.2%. Additionally, the tech-heavy Nasdaq 100 futures are down by 1.7%. This downturn is reflected in the shares of Japan’s Metaplanet (3350), also known as Asia’s MicroStrategy due to its significant bitcoin treasury, which plummeted by 9.44% on the Tokyo Stock Exchange. Similarly, the crypto and blockchain venture fund SBI Holdings saw its shares fall by 3.60%.
In the U.S. market, Coinbase (COIN) and MicroStrategy (MSTR) experienced declines of more than 5.9% in pre-market trading. Furthermore, mining companies such as Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) reported a drop of 6%. The T-Rex 2x Long MSTR Daily Target ETF, designed to provide 200% of the daily returns of MicroStrategy, faced a steep decline of 9.6%.
It’s important to note that pre-market trading, which occurs before the regular market session begins, is typically limited to select participants like institutional investors or funds. This trading period can be marked by increased volatility due to lower liquidity.
The crypto markets faced a significant setback on Monday following President Donald Trump’s announcement of tariffs on imports from Canada, Mexico, and China over the weekend. He also threatened to impose taxes on the European Union. As a result, stock markets across Asia and Europe saw declines, while the U.S. dollar strengthened. Major cryptocurrencies, including XRP and ether (ETH), suffered substantial losses of around 25% as investors rushed to exit riskier assets.
