Donald Trump’s recent tariff policies have raised concerns among cryptocurrency companies, potentially derailing their plans for initial public offerings (IPOs). Experts warn that the reciprocal tariffs, which have already caused significant turmoil in the U.S. stock market, may push many firms to reconsider their IPO strategies.
According to a report by The Block, Austin Campbell, an adjunct professor at NYU Stern School of Business and CEO of payment technology firm WSPN, expressed that the current market conditions are reminiscent of the 2008 financial crisis. He stated, "All of them will pull. You can’t have new IPOs when the market is crashing like this." This sentiment reflects the anxiety among companies that had intended to go public, as they now face the harsh reality of an unstable financial environment.
In fact, the impact of Trump’s tariffs has already been felt by firms like Klarna, a Swedish fintech company, which recently halted its IPO due to market instability. For cryptocurrency companies, which are already struggling to gain traction in the public markets, the situation is particularly dire. Circle, the issuer of the stablecoin USDC, has submitted its Form S-1 to the U.S. Securities and Exchange Commission but is not expected to go public anytime soon. Predictions on the forecasting site Polymarket indicate that the likelihood of Circle launching an IPO in 2025 is decreasing.
Gene Hoffman, CEO of Chia Network, commented on the challenges facing the cryptocurrency sector. He noted, "It’s certainly a tough market, and it’s not surprising that every growth stock in new technology is becoming cautious." Chia Network is aiming to list in a more favorable regulatory environment, emphasizing the need for a supportive backdrop for potential IPOs.
This turmoil comes on the heels of Trump’s surprising shift from being a vocal critic of cryptocurrencies to becoming a pro-cryptocurrency advocate. In 2021, he famously referred to Bitcoin as a "scam," but by the time of his 2024 presidential campaign, he had reportedly received over $50 million in donations from the cryptocurrency industry. Furthermore, he has even launched his own cryptocurrency, dubbed $TRUMP.
On the broader economic front, Trump's tariff announcement led to a staggering loss of $5.4 trillion in the U.S. stock market within just two days. The S&P 500 index plummeted to its lowest level in 11 months, and the Nasdaq 100 officially entered bear market territory. However, amidst this chaos, the cryptocurrency market has shown surprising resilience. Bitcoin (BTC) experienced a modest decline of about 6%, significantly less than the Nasdaq's 11% drop. The CoinDesk 20 index, which tracks a broad range of cryptocurrencies, fell by approximately 4.9% during the same period.
The current market capitalization of the cryptocurrency sector stands at around $2.65 trillion. In the last 24 hours, Bitcoin saw a slight decrease of 0.3%, settling at $82,619.77, while the CoinDesk 20 index actually rose by about 0.2%. On April 4, 2025, most cryptocurrency-related stocks experienced losses, but some, like Bitcoin miner MARA Holdings and Core Scientific, managed to gain by 0.6% and 0.4%, respectively.
Geoffrey Kendrick from Standard Chartered has noted that cryptocurrencies, particularly Bitcoin, are increasingly seen as a hedge against traditional finance (TradFi). He remarked, "I believe we can add the utility of Bitcoin as a hedge against U.S. isolation after the past 36 hours." He pointed out that during the recent downturn, only Microsoft from the so-called Magnificent Seven stocks outperformed Bitcoin.
Adding to the positive sentiment in the cryptocurrency community, enthusiasts celebrated the birthday of Bitcoin's pseudonymous creator, Satoshi Nakamoto, on April 5. This date holds symbolic significance as it also marks the anniversary of President Franklin D. Roosevelt’s Executive Order 6102 in 1933, which mandated citizens to surrender their gold to the Federal Reserve.
In light of these developments, Trump's administration appears to be positioning itself as a pro-cryptocurrency regime, aiming to establish the U.S. as a "Bitcoin superpower." His administration is reportedly crafting policies to promote cryptocurrencies, including the potential dismissal of the SEC chairman and the establishment of a national reserve of cryptocurrencies, focusing on Bitcoin and Ethereum.
While Trump’s approach contrasts sharply with the previous Biden administration, which had favored stringent regulations, the current administration’s favorable stance is generating significant investor interest. Bitcoin is rapidly gaining momentum, with recent reports indicating that it is on track to reach unprecedented heights, with some speculating it could breach the $100,000 mark by November.
As the cryptocurrency market continues to navigate these turbulent waters, the interplay between Trump’s tariff policies and the broader economic landscape will undoubtedly shape the future of digital assets in America. With the potential for a national reserve of cryptocurrencies and a shift in regulatory attitudes, the stage is set for a dramatic evolution in how cryptocurrencies are perceived and utilized in the U.S. economy.
