The unprecedented large-scale tariff policy launched by US President Trump yesterday (3rd) caused market chaos, and while global stock markets suffered massive impacts, it also brought down the cryptocurrency market.
According to CoinGecko data, Bitcoin has dropped from its April 3rd high of $88,500 to the current $82,737, a decline of 6.5%; ETH has fallen to $1,786, hitting a new low since late October 2023; mainstream Altcoins like BNB, SOL, and XRP have also experienced severe declines, with market panic continuously escalating.
US Mining Companies Impacted
It's worth noting that Trump's latest tariff policy's impact on the cryptocurrency field goes beyond crashing coin prices. According to Cointelegraph's report yesterday (3rd), US crypto miners are also panicking because this will directly affect the prices of mining machines imported from outside the US. On this, Blockware Solutions' chief analyst Mitchell Askew pointed out:
Tariffs have a huge impact on Bitcoin miners, offshore supply will be compressed, thereby intensifying US miners' demand. If this combines with Bitcoin's rise, ASIC mining machines might surge 5 to 10 times like in 2021.
Meanwhile, Blockware's CEO Mason Jappa added that most Bitcoin mining equipment in the US is currently imported from Malaysia, Thailand, and Indonesia, and mining equipment already arrived in the US might become scarcer due to import restrictions, with prices potentially rising as well.
In this context, Lauren Lin, manager at Bitcoin mining software company Luxor Technology, stated that Trump's tariff policy has already left the company overwhelmed, with mining companies accelerating the transportation of offshore mining equipment to the US.
How Large is Bitcoin Mining in the US?
According to public information, after China's comprehensive ban on cryptocurrency mining in 2021, a large number of miners migrated to the US, especially to Texas, Georgia, and New York. At the beginning of this year, according to industry analysis (such as Hashrate Index), the US has already become the world's largest Bitcoin mining market, with its hash rate potentially exceeding 40%, even approaching 50%.
The US also has numerous large mining enterprises and facilities. For example, Riot Platforms' mine in Rockdale, Texas, is the single most electricity-consuming Bitcoin mine in the US; companies like Bitdeer and Core Scientific also operate large-scale facilities in the US and plan further expansion.
Mining Companies' Stock Prices Collectively Decline
In today's US stock market crash, Bitcoin mining companies were not spared. According to Google Finance data, the stock performance of major mining companies was as follows:
- Marathon Digital Holdings (MARA): Dropped 9.58%, closing at $11.23;
- Riot Platforms (RIOT): Dropped 8.98%, closing at $7.30;
- Cipher Mining (CIFR): Dropped 12.83%, closing at $2.31;
- Core Scientific (CORZ): Dropped 15.08%, closing at $7.15;
- Hut 8 Corp (HUT): Dropped 11.05%, closing at $11.91.
