The crypto market faced another harsh blow on Monday, as Bitcoin plunged to its lowest level in 2025, dragging down major U.S.-listed crypto stocks with it. The decline follows growing global economic uncertainty, fueled by newly introduced tariffs that have raised fears of a full-scale trade war.
Bitcoin, the world’s largest cryptocurrency, fell as much as 5.5% before trimming losses slightly to close 2.1% lower. This sharp dip sent shockwaves through the market, with investors rapidly pulling out of riskier assets like digital currencies and blockchain-related stocks.
One of the biggest casualties was MicroStrategy (MSTR), a company known for holding billions of dollars’ worth of Bitcoin on its balance sheet. Its stock price plunged over 7%, wiping out much of the gains it recorded in the previous session.
Coinbase (COIN), one of the most popular U.S.-based crypto exchanges, saw its stock fall by 6%, while Robinhood (HOOD) declined 4% following a downgrade from Barclays. The investment bank slashed its price target for Robinhood from $76 to $45, citing concerns that ongoing crypto market instability will significantly reduce the company’s transaction revenue for the current quarter.
Both Robinhood and Coinbase had seen an uptick in investor confidence after Donald Trump’s victory in the 2024 presidential election. Trump had pledged to transform the U.S. into “the crypto capital of the planet,” a promise that initially boosted market sentiment. However, that momentum has quickly faded as his administration introduced aggressive new tariffs last week, shaking investor confidence.
Although the new levies do not directly impact crypto companies, the broader economic uncertainty they’ve triggered is taking its toll. These are some of the most significant trade barriers imposed in over a hundred years, sparking panic across financial markets and leading to a massive selloff in risk assets.
Billionaire investor Bill Ackman added fuel to the fire by warning that the U.S. could be heading toward what he described as an “economic nuclear winter.” His comments echoed fears that tighter trade conditions could stall economic growth, limit capital flows, and erode market stability.
Bitcoin, which has often been promoted as a safe haven during times of global uncertainty, is now being tested. While its supporters argue that it serves as a hedge against traditional market volatility and currency devaluation, recent price action suggests that confidence in that narrative may be weakening.
The coming weeks will be critical for the crypto industry, as investors watch for policy updates, economic data, and any signals of potential relief. Until then, volatility is likely to remain high as the market continues to navigate this challenging terrain.
