Shares of cryptocurrency-related companies fell sharply on Monday, following President Donald Trump’s recent executive order to establish a federal Bitcoin strategic reserve and rising concerns about U.S. economic policies.
MicroStrategy (MSTR), the largest corporate holder of Bitcoin, saw its shares tumble by 13%, while Coinbase Global (COIN) and MARA Holdings (MARA) also faced significant losses of approximately 12% and 13%, respectively. The declines mirrored a broader slump in digital asset prices as investor concerns grew over the implications of the new policy direction for the cryptocurrency market.
President Trump’s executive order seeks to position the United States as a leading player in the cryptocurrency sector by creating a federal Bitcoin reserve. This reserve will consist of Bitcoin already seized by the government, with no plans for additional purchases. While the administration views the move as a step towards strengthening the country’s crypto strategy, it has introduced uncertainty regarding the broader impact on the digital asset market and the future of cryptocurrency regulations.
Adding to market unease, Trump announced plans to implement reciprocal tariffs beginning on 2 April, heightening concerns about potential economic disruptions. In a recent interview, he acknowledged the possibility of a U.S. recession, referring to the current economic landscape as a “transition period.” This rhetoric, combined with policy changes, has contributed to increased volatility in both traditional financial markets and cryptocurrency investments.
The combination of cryptocurrency policy shifts and economic uncertainty underscores how sensitive crypto-related stocks are to government actions and broader financial conditions. As investors navigate this evolving regulatory environment, market participants will be closely watching future policy developments and their implications for the digital asset ecosystem and cryptocurrency trading landscape.
