MSTR and COIN Leads Crypto Stock Selloff as US-China Truce Hype Fades

• US and China officials reached a pending trade deal agreement that impacted the financial crypto stock market.
• The value of MSTR and COIN stocks dropped 11.9% and 5.3% in just a day
• Coinbase stands to benefit from Circle’s growth, cushioning the crypto stock investors.

After months of escalating tensions from a trade war that started in February, the US and China finally reached a consensus, indirectly placing crypto stocks in the spotlight.

On Tuesday, June 10, 2025, Chinese and Trump officials said they have agreed to implement a new trade framework. Both the stock and crypto jumped on this news.

As the hype about the US-China truce fades, crypto stocks are experiencing huge sell-offs. Leading these sell-offs are stocks from Strategy, MSTR, Coinbase, and COIN.

US and Chinese Officials Renew Trade Deal Truce

US President Donald Trump revealed on Wednesday that the US government has signed a trade deal agreement with China.

“Our deal with China is done, subject to final approval with President XI and ME,” Trump wrote on Truth Social.

Chinese and US officials held a two-day marathon talk in London to resolve the escalating trade war.

According to Trump, China agreed to ease rare earth restrictions, which are critical for the US  auto manufacturing industry.

The US decided to relax some tech export limits and allow Chinese students access to its universities.

President Trump added that the US will impose a 55% tariff on Chinese goods under the renewed agreement. Likewise, China will impose a 10% import tax on American products.

The deal is still pending approval from Trump and Chinese President Xi Jinping. Many specifics, like its implementation, are still unclear.

Many hailed the agreement as a step toward a truce with US tariffs set at 55% and China’s at 10%.

Both rates are lower than each nation’s triple-digit tariff levels unveiled back in April 2025. However, it is still higher than before Trump began his second term in office.

US Crypto Stocks React

The US crypto stock market took a sharp hit as news about the trade deal agreement began to wane.

The value of Strategy’s MSTR fell sharply by 0.87% within the past 24 hours to approximately $383.75. Similarly, Coinbase’s COIN fell 5.3% to $244.

The S&P 500 fell slightly by 0.2%, while the Dow Jones Industrial Average dropped 0.5%. The Nasdaq Composite also experienced plummeting prices within the same period, falling by 0.2%.

The MSTR declining price follows recent concerns raised about Strategy’s Bitcoin (BTC) accumulation vision.

Strategy currently holds about 3% of the total Bitcoin supply. Strategy Chairman Michael Saylor has said the company has a goal of acquiring 5% of the total Bitcoin supply.

However, a recent report from Sygnum noted that such excessive concentration creates a risk for Bitcoin.

Coinbase Stock Is Immune With Circle Partnership

Coinbase’s partnership with Circle has evolved substantially. Coinbase and Circle earlier signed what critics call a predatory revenue-sharing agreement.

Under the deal, Coinbase keeps 100% of the revenue generated when Circle’s stablecoin, USDC, is minted on its platform.

However, the split is 50/50 for USDC held outside Coinbase’s platform. This means Coinbase benefits directly as the total supply of USDC in the market.

This agreement has become a serious revenue driver for Coinbase, with over $60 billion in USDC circulating.

Additionally, Coinbase Exchange stands to benefit from Circle’s recent Initial Public Offering (IPO) filing.

The success of this IPO will mean more money for Coinbase. For Circle, the revenue-sharing deal limits its ability to form new USDC-related partnerships without consent from Coinbase.

This arrangement is a shied for Coinbase as a frontline crypto stock entity.