Crypto Drops Following Tariff News, Circle Files for IPO, and GameStop Raises $1.5B To Buy Bitcoin

Takeaways

• Trump reveals new tariff plan: President Donald Trump announced a sweeping 10% tariff on all US imports on Wednesday along with a 25% tariff on all foreign automotives. The crypto market rallied leading into the press conference before pulling back, mirroring sharp drops from the Nasdaq and S&P 500.
• Circle has filed for an IPO on the NYSE, targeting a $5 billion valuation: The company will hit the public market three years after it attempted to go public via SPAC before pulling the offering.
• GameStop pulled in $1.5B for bitcoin buying strategy: The fading brick-and-mortar video game retailer has issued $1.5 billion in convertible notes, tapping a similar bitcoin treasury program used by Strategy.
• Ethereum’s DEX trading volume now leads the industry, pushing Solana into second place: Despite recent turbulence for ether price, the Ethereum network’s robust trading activity and Uniswap’s dominance signal a comeback in the DEX space.
• Trump has pardoned key BitMEX executives, clearing them of past anti-money laundering violations: The decision extends the president’s slew of actions to undo what his administration perceives to be overly-restrictive crypto policies.

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Crypto Prices Pull Back As Trump Announces New Tariffs

President Donald Trump announced sweeping tariffs of at least 10% on all imports on Wednesday as part of what Trump declared “Liberation Day.” In an event held on the White House lawn, Trump reiterated he would enact a sweeping 25% tariff on automotive imports and then detailed new tariffs the US will apply to incoming goods from China, the European Union, and a range of other trading partners.

Bitcoin and other top cryptocurrencies were once seen as a hedge against traditional markets but have increasingly been correlated to tech stocks in recent months. The Nasdaq and S&P 500 jumped 0.87% and 0.67% respectively on Wednesday before the announcement, then pulled back aggressively on Thursday as US trading partners digested the tariff news, with the Nasdaq and S&P 500 dipping 6% and 4.9%, respectively. As of Thursday afternoon, the price of bitcoin settled under $82,000, pushing the top cryptocurrency down more than 12% year-to-date.

Circle Files for IPO, Aims for $5 Billion Valuation on NYSE

Circle, the issuer of USDC, has officially filed for an IPO with the SEC, marking its second attempt to enter public markets after a failed SPAC merger three years ago. The company reportedly plans to trade on the New York Stock Exchange under the ticker symbol CRCL, with JPMorgan Chase and Citigroup serving as lead underwriters.

The IPO comes as tech stocks face volatility, with the Nasdaq just concluding its worst quarter since 2022. However, interest in crypto-related stocks is surging amid political tailwinds and expectations of stablecoin legislation under the Trump administration. Circle, which relocated its headquarters to One World Trade Center last year, reported $1.68 billion in revenue for 2024.

USDC remains the second-largest stablecoin, with a roughly $60 billion market cap, growing 36% this year. The stablecoin sector’s rising importance in crypto trading, cross-border payments, and other use cases has drawn investor interest, particularly as Coinbase, a key partner of Circle’s, aims to help make USDC the market’s leading stablecoin.

GameStop Raises $1.5B for Bitcoin Buying Program

Video game retailer GameStop has raised $1.5 billion by issuing senior convertible notes to investors to create a bitcoin treasury program, using the same financial mechanism used by Strategy that has helped the company’s stock price soar nearly 2,400% over the past five years. GameStop will reportedly use a portion of the proceeds to purchase bitcoin and for general business purposes.

Convertible notes allow companies to raise capital from investors while giving the option to redeem their shares later at a pre-determined price. The conversion rate for this offering is equivalent to 33 shares of GameStop common stock for every $1,000 worth of convertible notes. The notes are scheduled to mature on April 1, 2030.

For GameStop, the move is part of CEO Ryan Cohen’s aggressive turnaround strategy as the Chewy founder attempts to fortify the company’s balance sheet. GameStop plans to close hundreds of stores as it deals with diminishing consumer demand for physical video games.

Ethereum Tops DEX Rankings, Overtaking Solana

Ethereum has regained its position as the premier blockchain for decentralized exchange (DEX) trading, surpassing Solana for the first time since September. The change occurred earlier this week, as overall trading volumes on Ethereum-based DEXs surged to $64.6 billion, about 22% higher than Solana’s $52.6 billion at that time. The shift seems to have been associated with a slight downturn in memecoin activity—something which Solana is known to be a popular choice for.

Platforms such as Raydium and Pump.fun in particular saw a substantial decline in trading activity, with Raydium recording no days with volumes exceeding $1 billion in March, a sharp contrast to its previous peak of $13 billion in January. This shift also took place against a backdrop of broader market uncertainty, as total crypto market cap fell and macroeconomic concerns grew, including disappointment over US strategic reserve purchases.

Trump Pardons BitMEX Co-Founders Amid Crypto Controversies

Trump has issued pardons for key executives from the BitMEX cryptocurrency exchange. The pardons extend to former CEO Arthur Hayes, in addition to co-founders Benjamin Delo and Samuel Reed, and also include former head of business development Gregory Dwyer. These individuals had previously pleaded guilty to a charge of violating the Bank Secrecy Act by failing to establish adequate anti-money laundering and KYC programs.

The pardons add to a growing list of crypto-related pardons from Trump’s administration, following earlier high-profile cases such as the pardon of Silk Road founder Ross Ulbricht. The decision has further ignited debates on regulatory oversight and accountability within the crypto industry.

-Team Gemini