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Crypto Crashes Due to Trump Tariffs

Plus, TSMC's Deepseek news pain.

February 03, 2025

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Today is Monday, February 3, 2025.

The Early Bird Index today is 81.94

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Crypto Crashes Due to Trump Tariffs

The recent tariffs enacted by President Donald Trump over the weekend caused cryptocurrency prices to crash.

Background: On Saturday, Trump announced new taxes for imports from Canada, Mexico, and China.

Details: On Sunday, crypto prices plunged. Bitcoin was down 5%, Solana was down 3%, Ethereum was down 18%, Chainlink was down 19%, Dogecoin was down 20%, XRP was down 19%, and Cardano was down 23%.

Early Bird’s Nest Egg Gains: Tariffs can negatively impact crypto prices due to several interconnected economic and market factors.

  • Tariffs create economic uncertainty, causing investors to move away from risk-sensitive assets such as crypto.

  • Tariffs also strengthen the U.S. dollar, which puts downward pressure on crypto.

  • Higher costs can reduce disposable income, limiting the ability of retail investors to purchase crypto.

Final Thoughts: Even Trump’s crypto dropped 10% on Sunday.

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Notables

Notable Earnings Today: Palantir Technologies (Nasdaq: PLTR), Tyson Foods (NYSE: TSN), NXP Semiconductors (Nasdaq: NXPI), Fabrinet (NYSE: FN), Kyndryl (NYSE: KD), IDEXX Laboratories (Nasdaq: IDXX), Clorox (NYSE: CLX), Kforce (NYSE: KFRC), Saia (Nasdaq: SAIA), Twist Bioscience (Nasdaq: TWST), Capital Southwest (Nasdaq: CSWC), Healthpeak Properties (NYSE: DOC), J&J Snack Foods (Nasdaq: JJSF), BellRing Brands (NYSE: BRBR), Napco Security Systems (Nasdaq: NSSC), Rambus (Nasdaq: RMBS), Alliance Resource Partners (Nasdaq: ARLP), Cabot (NYSE: CBT),  Equity Residential (NYSE: EQR), Flexsteel Industries (Nasdaq: FLXS), Johnson Outdoors (Nasdaq: JOUT), Lavoro (Nasdaq: LVRO), MGIC Investment (NYSE: MTG), NJ Resources (NYSE: NJR), RBB Bancorp (Nasdaq: RBB), Woodward (Nasdaq: WWD).

Notable IPOs Today: Roman DBDR Acquisition Corp. II Ordinary shares (Nasdaq: DRDB), Mountain Lake Acquisition Corp. Class A Ordinary Shares (Nasdaq: MLAC)

Notable Equity Crowdfunding Campaigns Ending Today: T Street Eatz (Honeycomb), Sandwich Starr (Honeycomb).

Notable Economic Events Today: S&P Global Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Construction Spending (10:00 a.m. ET).

TSMC's Deepseek News Pain  

It’s the first day the markets in Taiwan have been open since the Lunar New Year holiday, and the Taipei-listed shares of Taiwan Semiconductor (NYSE: TSM) seem to be down 5%.

Details: The stock is likely down today due to the emergence of the AI platform Deepseek, which has caused other semiconductor stocks to slip in the past week.

Final Thoughts: Taiwan Semiconductor’s stock is still up 80% in the last 12 months.

Porsche Discussing Leadership Changes

On Saturday, Porsche (OTCMKTS: DRPRY) said it was discussing the early termination of its finance and sales chiefs.

Final Thoughts: The stock is down 28% in the last 12 months.

Good Question: Is the US jobs market still looking solid? (Financial Times)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.