Once upon a market tempest, President Donald Trump dropped a tariff bomb. Starting November 1, a blistering 100% tariff on Chinese goods.
Why? Because China dared to mess with rare earth exports, those magical materials essential for your smartphone, supercomputers, and basically every gadget that makes life bearable in this century. Cue the financial panic sirens.
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Financial chaos
The S&P 500 took a nosedive, shedding 2.7% in a single day. Investors collectively screamed and bolted from riskier assets like kids fleeing a school fire drill.
That set the stage for a gut-wrenching sell-off in crypto-related stocks, which got stomped harder than a flat bitcoin wallet on a bad trading day. Leading the charge in this financial chaos? The full cast of crypto stars.
Analysts say there is a mass-scale drama. Coinbase, the giant global crypto hangout, plunged 7.75%, closing at $357 after flirting with $387 the previous day.
Bullish, a crypto financial services firm, wasn’t spared either, down a savage 9.42% to $60, despite an optimistic flirt earlier in the day.
And it’s global, like Bitcoin itself. Japan’s Bitcoin treasury firm Metaplanet showed some spunk intraday, hitting $3.65, but finally buckled, closing 2.25% lower at $3.48.
Mining giant MARA Holdings took a beating, surrendering 7.67% to close at $18.65, then slipping further after hours.
Industry shakeout
Then there’s Bitcoin treasury titan Strategy, the big dog holding about $78 billion in BTC. Even Strategy wasn’t immune, closing 4.84% down at $304, with volatility bouncing them from $323 highs to $303 lows.
Here’s where it gets truly dystopian for these Bitcoin treasuries. Experts are rattled by Strategy’s fundamental health signals.
Its multiple-to-net asset value sank below 1.180, the lowest in almost two years.
Geoffrey Kendrick from Standard Chartered warns that dropping below 1.0 is a red flag, signaling balance sheet woes and hinting at an ugly industry shakeout on the horizon.
On top of that, these companies rely heavily on the so-called PIPE financing.
CryptoQuant’s new report paints a grim picture, early PIPE investors could be staring down losses up to 55% as stock prices gravitate toward their discounted issuance levels.
Investment vehicles
Despite hoarding $78 billion in Bitcoin, Strategy’s market cap stands at $94 billion, meaning a $16 billion premium.
Yet analysts sniff out caution, the company’s last 12 months’ profit barely grazed $350 million.
The market’s betting big on founder Michael Saylor’s vision of Bitcoin-powered debt and investment vehicles, but the scoreboard’s still uncertain.
This red day is a cliffhanger in the global duel between economic superpowers, where tariffs and tech collide, pulling digital treasures into the geopolitical crossfire.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: October 12, 2025 • 🕓 Last updated: October 12, 2025
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