Two crypto stocks skyrocketed Thursday. Coinbase and MicroStrategy, now rebranded as Strategy, soared up to 24% after President Trump paused most tariffs.
Investors flooded back into risk assets, easing trade war fears. The surprise policy shift sparked a historic market rebound, lifting Bitcoin and crypto-linked stocks. Here’s why these companies led the charge.
Why These 2 Stocks?
Coinbase dominates as America’s largest cryptocurrency exchange. Its revenue hinges on trading fees from Bitcoin and Ethereum transactions. Meanwhile, Strategy, once a software firm, now holds billions in Bitcoin, making it a crypto proxy. Both stocks ride waves of market sentiment, bullish or bearish.
This week, their fates intertwined with geopolitics. Trump’s tariff freeze eased economic anxieties, reviving interest in volatile assets. Following this, crypto markets roared back to life.
90 Day Tariff Relief
On April 9, Trump announced a 90-day halt on tariffs for most nations, excluding China. Rates dropped to 10%, reversing prior escalations. Markets erupted in relief. The S&P 500 surged 12%, its best day since 2008. The Dow jumped nearly 3,000 points.
Investors, fearing inflation and recession days prior, scrambled into equities. Risk appetite rebounded, propelling crypto assets. Bitcoin climbed 7%, breaching $82,000. “The tariff pause was a lifeline,” said one analyst. “It signalled temporary stability.”
Bitcoin’s Rally Powers Strategy’s Leap
Strategy’s stock mirrors Bitcoin’s volatility. The firm holds over 300,000 BTC, worth billions. When Bitcoin plunged to $75,000 earlier in April, Strategy faced $5.9 billion in unrealised losses. Thursday’s rebound changed everything.
Bitcoin’s 7% spike lifted Strategy’s shares 25% intraday. By close, gains settled at 24.76%, hitting $296.86. Investors bet Bitcoin would stay resilient amid trade calm. “Strategy’s tied to crypto’s heartbeat,” noted a trader. “This rally was inevitable.”
Why is Coinbase up?
Coinbase thrives when markets churn. Thursday’s trading volumes spiked as investors rushed back. Shares leaped 21% intraday, closing 19% higher. Fees from Bitcoin and Ethereum trades drive its revenue, making sentiment shifts critical.
“Coinbase is the gateway for crypto exposure,” said an economist. “When fear fades, traders flock in.” The tariff pause provided that clarity. Retail and institutional activity surged, cementing the stock’s rebound.
Broader Market Rebound and Lingering Risks
The tariff reversal halted a brutal sell-off. Earlier in April, Trump’s initial tariffs spooked markets, dragging down tech and crypto stocks. Yet Thursday’s U-turn offered some relief, though risks remain.
China tariffs escalated to 125%, threatening global supply chains. Additionally, the 90-day pause isn’t permanent. “This is a ceasefire, not peace,” warned a strategist. Volatility could return if tensions flare post-July.
What Lies Ahead for Crypto Stocks?
Social media buzzed with excitement. Posts hailed Strategy’s 24% gain and Coinbase’s resilience. However, questions loom: Can Bitcoin hold $80,000? Will tariffs resurge?
Analysts urge caution. “Crypto stocks are weathervanes,” said one expert. “They’ll swing with every headline.” For now, investors relish the rally but brace for turbulence. The market’s next move hinges on Washington’s decisions.
A Temporary Stop or Lasting Shift?
Thursday’s rally showcased crypto’s sensitivity to policy. Coinbase and Strategy reaped double-digit gains, supported by Bitcoin’s bounce. Yet the tariff pause merely delayed broader trade battles.
While markets cheer the rebound, its longevity remains uncertain. For crypto investors, the message is clear: Enjoy the surge, but stay buckled up. The next twist could come swiftly.
Written By Fazal Ul Vahab C H
