The cryptocurrency market faced sharp declines as renewed U.S. trade tensions rattled investor sentiment. Leading altcoins Dogecoin (DOGE), Cardano’s ADA, and Solana’s SOL experienced substantial losses after a U.S. appeals court temporarily reinstated tariffs previously struck down by a lower court.
Dogecoin Leads Losses with 9% Decline
Dogecoin dropped 9% in the last 24 hours, making it one of the worst-performing major cryptocurrencies during this market correction. The price of DOGE fell to $0.20495, mirroring a wave of sell-offs triggered by macroeconomic instability.
Cardano’s ADA and Solana’s SOL also slumped, each falling 6%, to $0.70075 and $162.86, respectively.
Tariff Reinstatement Fuels Global Trade Fears
The market reaction follows a swift legal reversal in the United States. On Wednesday, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay, reinstating tariffs that had been struck down by a lower court. The move allows the tariffs to remain in place while the federal government pursues an appeal.
These tariffs, introduced on April 2 under the 1977 International Emergency Economic Powers Act, were branded as “Liberation Day” duties and target nearly all U.S. trading partners.
The court decision has rekindled global trade concerns, increasing volatility across financial and crypto markets.
Bitcoin and Ethereum Also Dip
The top two cryptocurrencies weren’t spared. Bitcoin dropped to $105,027, losing the crucial $106,000 support, while Ether fell below $2,700, settling around $2,620.53. This pullback came amid disappointing U.S. GDP figures, which revealed the economy contracted in Q1.
“Bitcoin retreated from its upper trading range at $110K to around $107K, easing recent market overheating,” said Nick Ruck, director at LVRG Research.
Gold Gains Amid Market Uncertainty
While crypto and equities slid, gold prices surged, fueled by rising jobless claims and renewed safe-haven demand. This divergence underscores investor caution in response to mounting economic and geopolitical concerns.
Conclusion
The temporary reinstatement of Trump-era tariffs has sent shockwaves through the crypto market, triggering a broad selloff in major altcoins and contributing to Bitcoin and Ethereum’s price retreat. As macroeconomic pressures mount and uncertainty persists, investors are closely watching upcoming regulatory and economic signals for further direction.
With tariffs back in play and U.S. economic indicators weakening, volatility may remain elevated across digital assets.