Shares of Coinbase Global and other firms linked to cryptocurrencies were hammered this quarter, as growing concerns about the US economy weighed on digital assets.
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Coinbase fell 31 per cent in the worst quarterly performance since FTX collapsed near the end of 2022.
Nearly every major crypto-linked stock plunged alongside it, from conglomerate Galaxy Digital Holdings to miners such as Riot Platforms and Core Scientific.
Things have not been much better in cryptocurrency markets, with bitcoin tumbling more than 10 per cent and ether losing 45 per cent of its value.
As US President Donald Trump escalates a global trade war, fear about what it means for the world’s largest economy has sparked unease across markets. The S&P 500 Index itself closed out its worst performance since 2022 on Monday. Traders have also fled particularly quickly from risky bets, including digital assets.
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“Many people in the community understand that this is not driven by fundamental reasons,” Oppenheimer analyst Owen Lau said. “This is mainly driven by the macro reasons because of the tariffs, potential trade war, people worried about a recession coming in.”
