The cryptocurrency and stock markets collapsed ahead of the start of the trading session on April 7, 2025. However, while indices as well as shares of US tech companies have shown significant drawdown, quotes of cryptocurrencies have shown resilience.
Donald Trump announced reciprocal and basic duties on April 2, 2025. We have dealt with this in detail in a separate piece:
Over the next two trading days, April 3 and 4, 2025, the capitalization of the companies that make up the S&P 500 Index fell by $5,4 trillion. By the close of the session on Friday, the index had fallen to $5074, its lowest level since early May 2024:
On April 3, 2025, the Magnificent 7 Index, which includes stocks of the seven largest U.S. tech companies, was down 6%, according to CNBC. On April 4, the index continued to fall. On the five-day chart, the drawdown is already nearly 10%.
Shares of firms in the Magnificent 7 fell an average of 5,85% by the close of the session. Tesla (10,42%), Nvidia (7,36%), Apple (7,29%) were the hardest hit:
The Nikkei index, which includes shares of the 225 largest Japanese companies traded on the Tokyo Stock Exchange, collapsed nearly 8% on the daily chart:
The China A50 Index, which is the Nikkei’s counterpart but for the Chinese stock market, sagged more than 6%, according to aggregator Investing.
Such performance of the largest traditional public companies contrasts with counterparts in the cryptocurrency segment. Despite the market collapse caused by macroeconomic instability, crypto firms are showing resilience.
Shares of Strategy (formerly MicroStrategy), the largest corporate holder of the first cryptocurrency, are trading at a premium of over 4% on the premarket:
Similar dynamics are demonstrated by the securities of MARA, one of the largest publicly traded miners in the US. In this case, the premium is small — 0,6%, but it is still there.
Two other miners, CleanSpark and Riot Platforms, are positive on the five-day chart, up 6,4% and 0,28%, respectively.
Payment service providers Coinbase and Robinhood collapse 5,2% and 13,2% on the five-day chart, respectively. But only the latter company is overtaking the stock market in terms of depth of drawdown.
Previously, we covered Standard Chartered Bank’s experiment to include bitcoin in the Magnificent 7 index instead of Tesla stock. It demonstrated greater efficiency and less volatility.