Cryptocurrency-related stocks all plummet... 'Trump shock'

Uk Jin

Summary

Cryptocurrency-related stocks faced selling pressure from the first trading day of this week, resulting in significant declines.
The market entered a bearish phase as there were no special announcements at the Cryptocurrency Summit, contrary to expectations.
Research head Roxanna Islam stated that the cryptocurrency market, as a high-risk asset, is largely influenced by investor sentiment.

As the cryptocurrency market has been struggling to break out of a bearish trend recently, cryptocurrency-related stocks showed significant declines from the first trading day of this week.

On the 10th (local time), Strategy (formerly MicroStrategy), the company holding the largest amount of Bitcoin (BTC), closed at $239.27 on NASDAQ, plunging 16.88% from the previous trading day. Furthermore, leveraged exchange-traded funds (ETFs) linked to Strategy fell by 33.09% just on that day.

Strategy wasn't the only one recording weakness on this day. Coinbase (-17.58%), Robinhood (-19.79%), and Marathon Digital Holdings (-16.29%) all significantly declined during the trading session.

These stocks faced selling pressure from the first trading day of this week as the cryptocurrency market's downward trend intensified over the weekend.

The cryptocurrency market had high expectations for President Donald Trump's 'Cryptocurrency Summit' last week. This was because Trump had previously posted that Bitcoin (BTC), XRP, Solana (SOL), ADA, and Ethereum (ETH) should be adopted as strategic reserve assets. However, contrary to expectations, no special announcements were made regarding this at the summit, causing the cryptocurrency market to enter a bearish phase. Additionally, President Trump's aggressive tariff policies triggered macroeconomic concerns, further deteriorating investor sentiment.

As of 6:51 AM on the 11th (Korean time), Bitcoin is trading at $79,377, down 2.92% from the previous day. Major altcoins including Ethereum (-6.55%), XRP (-4.95%), Solana (-7.10%), and ADA (-5.45%) are also showing weakness at the same time.

Regarding this, Roxanna Islam, head of research at TMX Betaphi, said, "There are still many long-term growth drivers for cryptocurrencies. Especially, a crypto-friendly government is important," but added, "The problem is that the cryptocurrency market is a high-risk asset that is driven more by emotion than rationality."