Prior to Monday’s market opening, U.S.-listed cryptocurrency businesses’ shares fell precipitously, reflecting a steep decline in bitcoin as growing tariff tensions and concerns about a global trade war caused a widespread flight from riskier assets.
Bitcoin recently traded 2.1% down on Monday, plunging as high as 5.5% to its lowest level since 2025.
While cryptocurrency firm Coinbase saw a 7% decline in premarket trade, corporate bitcoin holder Strategy saw a decline of almost 10%. After Barclays cut its price target, online brokerage Robinhood fell 10.5%, citing worries that the company’s transaction revenue this quarter would be negatively impacted by the turbulence in the cryptocurrency market.
MARA Holdings fell 11% and CleanSpark down 10% among the miners.
According to CoinMarketCap, Bitcoin had recovered somewhat by 7 am IST, trading at about $78,938, down 5.69% in a day. Its trading volume was $40.97 billion, and its market capitalization was $1.56 trillion.
Ethereum did worse, falling 12.10% to $1,590.06 with a $191.88 billion market valuation. Other significant tokens suffered as well. Tether, although remaining steady at $0.9994, controlled trade volumes at $82.48 billion, even exceeding Bitcoin, while Solana fell 11.44% to $106.53.
Over the course of the day, the market capitalization of all cryptocurrencies dropped by 6.59% to $2.5 trillion. High activity during the slump was demonstrated by the daily trading volume, which increased by 137.91% to $101.84 billion.
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Regulation divides the industry
The cryptocurrency sector has responded in a variety of ways. “The government shouldn’t put its thumb on the scale to benefit one industry over another,” said Brian Armstrong, CEO of Coinbase, on X. Both banks and cryptocurrency businesses ought to be permitted and encouraged to communicate their interests with customers.
Stablecoins, according to Hina Sattar Joshi, head of digital assets sales at TP ICAP, are the first genuine blockchain application “to be fully integrated into traditional finance.” “We are witnessing the early stages of this transformation,” she wrote in an email remark.
Stablecoins are attracting a lot of institutional attention, she continued, describing them as a “credible bridge between traditional assets and crypto.”
Tether is the leader, but it poses new dangers. Which now has a market valuation of $144 billion, is at the center of this change. It is the most popular stablecoin and is used extensively for trading other digital assets. Tether’s holdings of Bitcoin, gold, US Treasuries, and other financial products brought in $13 billion in earnings in 2024 alone.
This achievement is drawing in established financial behemoths. According to DL News, Bank of America CEO Brian Moynihan stated at a recent Economic Club event that “it’s pretty clear there’s going to be a stablecoin.” “We’ll enter that industry if they legalize it.”
