Crypto Markets Rebound Alongside U.S. Stocks After Early Declines
May 1, 2025 – By Tom Carreras, Edited by Stephen Alpher
After a rocky start to the day, both the U.S. stock and cryptocurrency markets rebounded in Wednesday’s afternoon trading hours. Initial losses were triggered by underwhelming economic data, but investor sentiment appeared to recover as the day progressed.
Market Snapshot
U.S. stock indices fell sharply by around 2% early in the session. However, they clawed back gains later in the day, with the S&P 500 managing a slight increase by the close and the Nasdaq slipping just 0.1%.
The crypto market mirrored this reversal. Bitcoin (BTC), which was down nearly 2% at one point, narrowed its 24-hour loss to just 0.4%, trading around $94,700 shortly after the U.S. markets closed.
Altcoins and Crypto Stocks Lag Behind
While bitcoin recovered some ground, altcoins were hit harder and underperformed. The CoinDesk 20 Index dropped 2% in the past 24 hours, with assets like Litecoin (LTC), Ripple (XRP), Avalanche (AVAX), and Chainlink (LINK) all losing about 4%.
Crypto-related equities also saw modest declines. Notably, bitcoin mining company Hut 8 (HUT) fell by 5.7%, marking one of the larger single-day drops among crypto stocks.
Economic Concerns and Political Commentary
The stock market’s early drop came on the back of weak economic indicators, continuing a recent trend of disappointing data releases. Despite this, U.S. President Donald Trump remained steadfast in his stance on trade tariffs.
“Maybe the children will have two dolls instead of 30 dolls,” Trump said during a public appearance Wednesday. “And maybe the two dolls will cost a couple bucks more. … They have ships that are loaded up with stuff, much of which we don’t need.”
Final Thoughts
While markets bounced back from their early lows, the mixed signals from both economic data and political leadership continue to inject uncertainty into the financial landscape. Investors will be watching closely to see whether these tight trading ranges in crypto break in either direction in the coming days.
