Bitcoin and cryptocurrency prices attempted a small rebound Friday after President Donald Trump late Thursday revived his tariff plans. Elsewhere, the Securities and Exchange Commission ruled that meme coins are collectibles, not securities.
President Trump on Thursday posted online that his 25% tariffs against Canada and Mexico will go into effect as scheduled on March 4. An additional 10% tariff will be levied against China on that date, following Trump's recent 10% tariff already in place. The President said the April 2 reciprocal tariff date will remain in "full force." The reciprocal tariffs will be a broad import tax, to match taxes charged by other countries on American goods, according to reports.
Tech stocks also led the market lower yesterday after results from Nvidia and Salesforce prompted a small sell-off. Meanwhile, bitcoin ETFs on Thursday saw their eighth consecutive day of outflows, losing almost $276 million, according to Farside Investors data. The spot bitcoin ETFs have recorded $3.26 billion in overall outflows since Feb. 18.
Meme Coins Unleashed
There was still some positive news for digital assets. The SEC late Thursday ruled that meme coins are collectibles, not securities, and do not fall under the purview of the regulator.
"Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation," according to an SEC statement, saying they are akin to collectibles. "Meme coins also typically have limited or no use or functionality."
Because meme coins have a "lack of utility, other than for entertainment or nonfunctional purposes," they do not meet the standards of a security. As such, meme coin sellers do not have to register their transactions with the commission.
President Trump launched his own meme coin, Official Trump, ahead of his inauguration. The Trump token rocketed to 75.35 by Jan. 20 but has fallen 85% from its record highs. Official Trump is now trading around 11.50, up from its Jan. 18 price of 8.59, according to CoinMarketCap.
Melania Trump launched her own meme coin the day after her husband. The Melania Meme token is trading around 83 cents, down about 90% from launch, after tumbling from its Jan. 20 high of 13.73.
Bitcoin Price Action
Bitcoin recovered to near $84,400 Friday after tumbling as low as $78,248 overnight, according to CoinMarketCap. Ethereum traded around $2,230, up slightly from its 24-hour low of $2,076.
Bitcoin has been in a major downtrend this month following reports last week that crypto exchange Bybit suffered a $1.5 billion ethereum hack after a planned transfer was manipulated. CEO Ben Zhou noted on social media that Bybit is solvent even if the hacked tokens are not recovered, as all client assets are backed one-to-one.
The world's largest cryptocurrency has held below the $100,000 level through most of February. Bitcoin hit a record high above $109,000 on Jan. 20 as President Trump's inauguration signaled a more crypto-friendly administration.
However, Trump's tariff plans and uncertainty for the next Federal Reserve rate cut have stalled momentum, despite digital asset executive orders and pro-crypto appointments.
The iShares Bitcoin ETF and other bitcoin ETFs reversed from an early decline to rise about 1.2% Friday. Bitcoin ETFs declined the past five trading days.
Coinbase climbed 3.5% after falling more than 1% in early trade.
Bitcoin miners surged by late Friday after a morning retreat.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
