The U.S. Court of Appeals for the Federal Circuit swiftly reinstated the controversial Trump-era tariffs by issuing a temporary stay on a lower court’s ruling that had invalidated them, keeping the duties in effect while the government appeals.
This unexpected legal shift sent shockwaves through the crypto market, with Dogecoin (DOGE) plunging nearly 9%, and Cardano’s ADA and Solana’s SOL each dropping around 6% over the past day amid rising fears of renewed trade conflicts.
Implemented on April 2 under the 1977 International Emergency Economic Powers Act and referred to as “Liberation Day” tariffs by former President Trump, these duties apply broadly to the United States’ trading partners.
Bitcoin (BTC) dropped below $106,000, and Ethereum (ETH) lost ground under the $2,700 threshold, reflecting increased market jitters. The CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market cap, declined by 4%.
Nick Ruck, director at LVRG Research, commented via Telegram, “Bitcoin took a hit after the appeals court restored the tariffs, compounded by Q1 U.S. GDP data showing economic contraction.”
“Gold prices rallied amid rising jobless claims and weakening corporate earnings,” Ruck added. “Despite the Federal Reserve’s focus on inflation, we anticipate Bitcoin will recover as investors seek stability amid market swings.”
Crypto market capitalization held steady near $3.42 trillion, indicating a cautious mood among investors.
Alex Kuptsikevich, chief market analyst at FxPro, told CoinDesk, “Cryptocurrencies are largely ignoring positive stock market moves since those gains are tied to tariffs and earnings, not monetary supply changes.”
He noted, “Bitcoin’s pullback from $110,000 to $107,000 represents a healthy correction after recent highs, helping to cool an overheated market.”
