Coinbase Drops 9% as Trump's Tariffs, Recession Fears Roil Crypto Market

On Monday, the crypto market experienced a significant downturn, with Bitcoin crashing below $80,000 in New York time. This decline was not isolated to digital coins and tokens; crypto equities also suffered substantial losses. The turmoil in the market was largely attributed to President Trump's ongoing tariff policies and his recent comments about a potential recession, which have rattled investors and caused widespread uncertainty.

Coinbase, the largest crypto exchange in America and a publicly traded company on the Nasdaq since 2021, saw its stock price plummet by over 9% per share, trading at under $198. Over the past 30 days, Coinbase's stock has dipped by nearly 30%. Similarly, Strategy, formerly known as MicroStrategy, experienced a more significant drop, with its stock price falling by over 10% in a single day, priced at nearly $258. Over the past month, Strategy's stock has declined by about 23%.

Bitcoin miners also felt the impact of the market turmoil. MARA, one of the largest Bitcoin miners, saw its stock price drop by over 10% in 24 hours, trading at $14.40 per share. Other public Bitcoin miners, including Riot Platforms, CleanSpark, and Hive Digital, also experienced declines, with Riot Platforms down nearly 5%, CleanSpark down by about 3%, and Hive Digital down by over 10%.

Investors often buy shares in public companies like Strategy and MARA to gain exposure to the crypto market, specifically Bitcoin. Strategy, which was previously a cloud software company, has shifted its focus to securitizing Bitcoin by buying and holding the cryptocurrency. This allows investors to gain exposure to the asset in a regulated manner. However, the recent market downturn has led to a decline in the stock prices of these companies, reflecting the broader market sentiment.

The market turmoil was exacerbated by President Trump's comments over the weekend, where he mentioned that the U.S. economy faces "a period of transition" and did not rule out a potential recession. Additionally, Trump's constant changes to the timing and extent of trade tariffs on major economies have kept traders on edge, contributing to the market's volatility. The Nasdaq and S&P 500 also experienced declines, with the Nasda