Crypto Stocks Crash – Is the Rebound Really Around the Corner?

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  • Trump’s tariff surprise sent U.S. crypto stocks and ETFs into a tailspin.
  • In the chaos, BlackRock’s IBIT found solace in net inflows, proving crypto’s stubborn streak.

The crypto market, much like a quiet meadow disturbed by a thunderstorm, was rocked on April 3rd by none other than a tariff bombshell dropped by former President Donald Trump. The announcement of new tariffs stirred up global trade tensions, sending the nerves of investors into a tizzy. And who could blame them?

Trump’s tariff shock

Oh, how the mighty have fallen! Major U.S. crypto stocks were hit harder than a bear on a picnic. Coinbase Global (COIN.O) tumbled 7.7%, while MicroStrategy (MSTR.O) slid by a mere 5.6%. The mining stocks? A catastrophe. MARA Holdings (MARA.O) plunged 8.3%, Riot Platforms (RIOT.O) collapsed by 8.7%, and Bitfarms saw a 5% drop. It was as if the crypto world had just been told the price of Bitcoin would forever remain at $1.

By the time the clock ticked toward the close of trading, the damage was done. Coinbase was down another 6.6%, MicroStrategy sank by 9.68%, and Riot fell by 8.98%. A true portrait of investor dismay.

Crypto stocks, ETFs – oh, the tragedy!

In the wake of Trump’s tariff shock, U.S. spot Bitcoin ETFs followed the downward spiral. The total net outflows from Bitcoin ETFs on April 3rd reached a staggering $99.86 million—almost as if they were trying to outrun the storm.

Only the brave dared to stay aboard. Grayscale’s GBTC led the exodus with $60.2 million in outflows, followed by Bitwise BITB and Fidelity FBTC, both witnessing a loss of $44.19 million and $23.27 million, respectively. It was as though crypto investors had collectively decided to sell their digital assets and flee to the hills.

Yet, amid this grim scene, BlackRock’s IBIT, the giant among Bitcoin ETFs, managed to stand tall like a lone tree in a raging storm. It saw $65.25 million in net inflows, a sign, perhaps, that even in the darkest of times, crypto’s resilience shines through, at least for some.

Meanwhile, Bitcoin [BTC] fell by 3.9%, and Ethereum [ETH] was not far behind, dropping 5.2%. If it wasn’t for the wailing of the investors, it could’ve been mistaken for a tragic opera.

The community speaks… with cautious optimism

Marcin Kazmierczak, COO of blockchain firm RedStone, took a philosophical approach to the downturn, noting the growing connection between digital assets and macroeconomic policy. He remarked:

“But protectionist policies that potentially weaken dollar hegemony could accelerate interest in decentralized alternatives over the medium-to-long term.”

A bit of optimism amidst the wreckage? Perhaps. David Hernandez, crypto investment specialist from 21Shares, added that, despite the carnage, the impact on crypto was relatively mild compared to other sectors. How reassuring. If the crypto market can survive this, surely it can survive anything.

“The price action highlights crypto’s hyper-democratic and borderless nature, allowing investors worldwide to hedge against the potential impact of macroeconomic uncertainties.”

So, even though the landscape is bleak, the crypto market persists with an admirable stoicism, holding its ground despite the external turmoil. A little turbulence never hurt anyone… right?

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2025-04-05 00:11