U.S. cryptocurrency stocks dropped in premarket trading on Thursday, April 3, following former President Donald Trump’s announcement of sweeping tariffs on multiple countries, which heightened global trade tensions and sparked a sell-off in riskier assets.
Crypto exchange Coinbase Global fell about 4% to $82,000, while major bitcoin holder Strategy dropped 3%. Among cryptocurrency miners, MARA Holdings, Riot Platforms, and Bitfarms saw declines of approximately 4%, 5%, and 6%, respectively. Bitcoin, the largest cryptocurrency, lost 2.3%, and ether dropped 3.3%. Ethereum (ETH) fell by 2.96%, trading at $1,823.34, while XRP decreased 2.21%, settling at $2.05. Solana (SOL) suffered even more significant losses, shedding over 9% at one point. Bitcoin had been trading around $85,000 before the decline.
Despite the Trump administration’s generally crypto-friendly stance and preference for lighter regulation, the broader economic instability caused by shifts in trade policy continued to weigh on cryptocurrency markets. However, some analysts pointed out that the losses in crypto assets were less severe compared to other sectors.
“The price action reflects crypto’s borderless and highly democratic nature, allowing global investors to hedge against potential macroeconomic uncertainties,” said David Hernandez, a crypto investment specialist at 21Shares, in a note to Reuters.
Crypto exchange-traded funds (ETFs) could still attract some inflows from retail investors seeking opportunities, according to Marco Iachini, senior vice president of research at Vanda Research. However, he warned that market uncertainty could slow investment activity.
Trump’s tariff plan, one of the most extensive in U.S. history, includes a 10% baseline tax on all imports, a 25% levy on foreign-made cars, and reciprocal duties set at 50% of the rates imposed on American exports by other countries. This tariff plan impacts 185 countries, including Nigeria, whose exports to the U.S. will now face a 14% tariff, up from the previous 27% tariff on imports from Nigeria.
Between 2015 and 2024, trade between Nigeria and the U.S. amounted to N31.1 trillion, according to the Nigerian Bureau of Statistics (NBS), with imports accounting for N16.4 trillion, or 8.7% of Nigeria’s total global exports.