Shares of U.S.-listed crypto companies took a hit on Monday, mirroring a significant drop in Bitcoin’s value as rising tariff tensions and fears of a global trade war spurred a broad sell-off in risk assets. Bitcoin plunged by as much as 5.5%, hitting its lowest point of 2025 so far. MicroStrategy (MSTR.O), which holds billions of dollars in Bitcoin on its balance sheet, dropped over 10%, erasing much of its recent gains.
Coinbase (COIN.O) saw a 5% decline, while Robinhood (HOOD.O) fell by as much as 14% after Barclays lowered its price target, citing concerns that ongoing crypto market volatility could impact the company’s transaction revenue for the quarter. However, Robinhood managed to recover some of its losses in the afternoon.
These declines have erased most of the gains seen since Donald Trump’s election victory in November, highlighting the challenges facing the crypto sector months after it surged on the promise of making the U.S. the “crypto capital of the world.”
“Risk-off sentiment is outweighing any optimism about a more favorable environment for cryptocurrencies,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Although crypto firms are not directly impacted by the new tariffs, they are still feeling the ripple effects as steep trade barriers, the highest in over a century, dampen investor confidence across various markets. Billionaire investor Bill Ackman warned on Sunday that the U.S. could be heading into an “economic nuclear winter.”
The sell-off may also raise doubts about Bitcoin’s reputation as a safe haven in times of economic turmoil. For years, advocates have promoted Bitcoin as a hedge against market volatility and currency devaluation.
“Crypto is not as unique as it may seem. It’s just another risk asset. If it’s going to be truly useful, it needs to decouple from these broader market trends,” said crypto entrepreneur Trevor Koverko.
