Crypto Stocks Slide as Risk-Off Sentiment Grows Amid Tariff Fears and Japan Bond Turmoil

Crypto-related stocks fell sharply on Tuesday, with several major names posting losses of up to 10%, as investors moved away from risk assets. The sell-off was driven by renewed tariff threats from the United States and rising concerns around Japan’s bond market, both of which weighed heavily on global financial sentiment and the broader crypto market.

MicroStrategy (MSTR), now rebranded as Strategy, was among the hardest hit crypto stocks, plunging nearly 8% during the session. The stock is closely correlated with Bitcoin price movements, and its decline came as Bitcoin dropped below the $90,000 level. Despite the sell-off, Strategy recently announced another Bitcoin purchase, pushing its total holdings past the 700,000 BTC milestone. However, macroeconomic uncertainty and tariff-related fears overshadowed the positive news, triggering heavy selling pressure.

Coinbase (COIN) shares also declined more than 5%, extending losses that began last week. The downturn followed the postponement of the CLARITY Act markup, a key regulatory proposal affecting the crypto industry. Coinbase had withdrawn support for the bill due to concerns over stablecoin yield distribution provisions, adding further uncertainty around the stock. Robinhood (HOOD) mirrored the weakness, falling over 2% on the day and remaining down more than 8% year-to-date, reflecting broader pressure on crypto-exposed equities.

Other crypto stocks were not spared. BitMine (BMNR) dropped nearly 10% after announcing another weekly Ethereum purchase, while Circle (CRCL) fell close to 8%. Circle’s stock is now down over 10% year-to-date and has lost more than 60% of its value over the past six months, erasing much of its post-IPO gains.

The broader risk-off move was fueled by fresh U.S. tariff threats, including a proposal to impose 200% tariffs on France, raising fears of slower economic growth and higher inflation. At the same time, rising long-term Japanese government bond yields, particularly the 40-year yield hitting multi-year highs, sparked concerns about tightening global liquidity. With the Bank of Japan considering further rate hikes, investors worry about a potential unwind of the yen carry trade, which could pressure risk assets like crypto stocks even further.