This week, the top stocks in Crypto stocks performed better than the broader stock market this week, backed by relatively stable cryptocurrency prices.
Stock markets have experienced two days of disruption after President Donald Trump announced the new tariffs on April 2. By Friday evening:
- S&P 500 closed 6%
- Nasdaq composites fell by 5.8%.
- The Dow Jones industrial average plummeted over 2,200 points, or more than about 5.5%.
- The Russell 2000 Index, a small-cap index, slid over 4%.
The Nasdaq has fallen 22% since its December high. Since heights in February, the S&P has fallen by about 17%.
Some crypto stocks outperformed these stocks in the week. For example, the strategy rose by more than 6.7%. The company, formerly known as MicroStrategy, was founded by Bitcoin Bull Michael Saylor.
Coinbase, the largest crypto exchange in the US, fell by just 3%, while Marathon Digital, Cipher Mining and Riot Platform fell by less than 5%.
Crypto Stocks vs S&P 500 and Nasdaq 100 Index | Source: TradingView
These stocks were better than the S&P 500 and NASDAQ 100 indexes, as other major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Binance Coin (BNB) remained relatively unchanged.
Bitcoin prices have risen 2.5% over the past five days, while XRP has risen 2.7%. The ether and BNB remained in the integration stage. Historically, these crypto stocks have tracked the performance of Bitcoin and other major coins.
Bitcoin vs XRP vs BNB vs ETH | Source: crypto.news
A potential catalyst for powerful Bitcoin performance was a bullish statement from BlackRock Head Larry Fink. In an annual letter to investors, Fink warned that the US dollar faces an increase in risk from Bitcoin. He cited rising US debt as a major risk to the US economy.
Bitcoin was also stable as investors view it as a gold alternative.
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Crypto stocks are not exposed to AI and customs duties
Another major reason why crypto stocks have been relatively successful is their lack of exposure to the artificial intelligence industry.
Investors and analysts are concerned that the AI theme that has driven the stock market over the past few years is slowing down. This explains why top AI stocks such as AMD, Nvidia and Soundhound have slowed performance in the broader market.
These risks rose this week after Microsoft reportedly slowing its investment in data centers worldwide. Some analysts warned that there was an oversupply of data centers compared to demand.
The crypto stocks were also stable as they were not exposed to the Donald Trump trade war. Mutual tariffs do not affect these companies due to the nature of the business. For example, the most important business of strategy is accumulating Bitcoin, and its software services play a minor role.
Crypto stock remained stable after the odds that Paul Atkins was confirmed to be the next head of the Securities and Exchange Commission when he moved forward from the Banking Commission.
read more: Senate committee passes Trump's Pick Paul Atkins as SEC chair
