Crypto Market Struggles Impact Stock Prices, U.S. Futures Suggest Further Bitcoin Declines
The downturn in the cryptocurrency markets has begun to affect the stock prices of companies focused on crypto, with U.S. futures indicating a continued drop in equities. This pattern is expected to lead to further losses for Bitcoin (BTC), which tends to follow the movements of U.S. stock markets.
S&P 500 futures saw a 1.4% decline, Dow Jones futures were down 1.2%, and futures for the Nasdaq 100, heavily weighted toward tech stocks, fell by 1.7%.
Shares of Metaplanet (3350), often referred to as Asia’s MicroStrategy due to its Bitcoin reserves, dropped 9.44% on the Tokyo Stock Exchange. SBI Holdings, a blockchain and crypto venture fund, fell by 3.60%.
U.S.-listed companies like Coinbase (COIN) and MicroStrategy (MSTR) were down more than 5.9% in pre-market trading, while mining companies MARA Holdings (MARA) and Riot Platforms (RIOT) dropped 6%. The T-Rex 2x Long MSTR Daily Target ETF, which amplifies the daily returns of MicroStrategy, lost 9.6%.
Pre-market trading, which happens before regular market hours, tends to be more volatile due to lower liquidity and the limited participation of institutional investors and funds.
Crypto markets took a significant hit on Monday after President Donald Trump announced tariffs on imports from Canada, Mexico, and China, and threatened new taxes on the European Union. This news led to a decline in stock markets across Asia and Europe, with the U.S. dollar rising as investors sought safer assets. Major cryptocurrencies like XRP and Ether (ETH) saw a 25% drop, as capital flowed out of riskier assets and into more stable options.
