Crypto Stocks Outperform Amid Market Turmoil
This week, crypto stocks fared better than teh broader market, thanks to stable cryptocurrency prices. After President Trump announced new tariffs on April 2, the stock market saw two days of chaos. By Friday:
- The S&P 500 fell 6%.
- The Nasdaq Composite dropped 5.8%.
- The Dow Jones Industrial Average lost over 2,200 points, or 5.5%.
- The Russell 2000 Index slipped 4%.
As December, the Nasdaq is down 22%. the S&P has dropped 17% since February. However, some crypto-related stocks performed well. Strategy, formerly MicroStrategy, rose by over 6.7%. Coinbase fell by just 3%, while Marathon Digital, Cipher Mining, and Riot Platforms declined by less than 5%.
These stocks outperformed because bitcoin and other major cryptos like Ethereum,Ripple,and Binance Coin were relatively stable. bitcoin rose 2.5% in five days, while XRP gained 2.7%. Ether and BNB remained in a consolidation phase.
A bullish statement by Larry Fink, Blackrock’s CEO, likely boosted Bitcoin. Fink warned that Bitcoin poses a risk to the U.S. dollar due to rising U.S. debt. Bitcoin is also seen as a safe haven, similar to gold.
Crypto stocks are not exposed to AI and tariffs. This week, AI stocks underperformed as Microsoft slowed data center investments.Crypto stocks also held steady due to their limited exposure to trade wars. Strategy,for instance,focuses on accumulating Bitcoin.
Paul Atkins’ potential confirmation as the next SEC head also steadied crypto stocks.
