U.S.-listed shares of cryptocurrency companies slumped on Monday, tracking a sharp drop in Bitcoin amid rising global trade tensions. Bitcoin fell by as much as 5.5%, hitting its lowest level in 2025, as fears of a full-blown trade war sent shockwaves through financial markets.
Strategy, a major institutional holder of Bitcoin, saw its shares plummet over 10%, erasing much of the previous session’s gains. Coinbase also declined by 5%, while Robinhood dropped as much as 14% after Barclays cut its price target, warning that crypto market instability could dent its transaction revenue this quarter.
The sharp declines reflect growing investor unease, particularly after former President Donald Trump threatened a 50% tariff on Chinese imports. Though crypto firms are not directly impacted by tariffs, the heightened risk-off sentiment has reduced appetite for speculative assets.
“High risk-off sentiment is canceling out optimism about a more clement environment for coins,” said Susannah Streeter of Hargreaves Lansdown.
Adding to concerns, billionaire investor Bill Ackman warned of a looming “economic nuclear winter,” further shaking investor confidence. The sell-off also puts pressure on Bitcoin’s reputation as a safe haven asset, a role it has long been touted to play during periods of economic stress.
