Crypto Stocks Dip Ahead of U.S. Market Open as Futures Suggest Bitcoin Downturn
U.S. futures declined while major cryptocurrencies sank, signalling potential for Bitcoin losses.
Key Points:
- Stock markets in Asia and Europe experienced downturns; the U.S. dollar rose concurrently. Meanwhile, significant cryptocurrencies like XRP and Ethereum (ETH) plummeted by as much as 25%.
- Crypto markets faced challenges following new tariffs imposed by President Donald Trump on imports from Canada, Mexico, and China during the weekend.
Market analysts have noted that cryptocurrency stocks were adversely affected, with losses in U.S. futures indicating further declines in equities, which traditionally correlate with Bitcoin trends.
Specifically, S&P 500 futures dropped by 1.4%, Dow Jones futures fell by 1.2%, and futures in the tech-heavy Nasdaq 100 registered a 1.7% loss.
The shares of Metaplanet (3350), often referred to as Asia’s equivalent of MicroStrategy due to its Bitcoin reserves, saw a decline of 9.44% on the Tokyo Stock Exchange. Additionally, the crypto venture fund SBI Holdings fell by 3.60%.
U.S.-listed companies, including Coinbase (COIN) and MicroStrategy (MSTR), were trading more than 5.9% lower before market hours, while MARA Holdings (MARA) and Riot Platforms (RIOT) saw drops of 6%.
The T-Rex 2x Long MSTR Daily Target ETF, which aims for 200% of MicroStrategy’s daily returns, fell by 9.6%.
Pre-market trading, which occurs before regular market hours, is noted for its volatility due to lower participation.
The ramifications of President Trump’s tariffs have caused ripples in crypto markets, which have witnessed a substantial exodus from risk assets, resulting in significant losses for major cryptocurrencies such as XRP and Ethereum.
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