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Shares of firms with ties to cryptocurrencies fell along with the price of digital assets on the latest moves by President Donald Trump.
The crypto market was impacted by Trump’s decision to set up a federal bitcoin strategic reserve without planning to buy more.
Comments by Federal Reserve Chair Jerome Powell that the central bank would take a wait-and-see approach to future interest-rate cuts while weighing the impact of Trump’s tariffs also were affecting cryptocurrencies.
Shares of Strategy (MSTR) and other companies tied to cryptocurrencies sank along with the price of digital coins on concerns about President Donald Trump’s federal bitcoin strategic reserve plan and worries about the U.S. economy.
Trump on Friday signed an executive order establishing the new reserve, which he said was part of his effort to make America the “cypto capital of the planet.” However, the proposal only calls for the reserve to include assets already seized by the government through legal action, and doesn’t suggest additional purchases.
Another factor weighing on the crypto market is the economic impact of Trump’s tariffs, and the response by other countries to them, including the future of interest rates. Last week, Federal Reserve Chair Jerome Powell said in a speech that policymakers will be taking a wait-and-see approach to rate cuts until the effect of the president’s moves are better understood.
Strategy, the biggest corporate holder of bitcoin, saw its shares sink 13% Monday morning. Shares of crypto trading platform Coinbase Global (COIN) and bitcoin miner MARA Holdings (MARA) also tumbled by about 12% and 13%, respectively.
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