In a jarring twist for crypto enthusiasts, Dogecoin plunged 9% while Cardano’s ADA and Solana’s SOL each slumped 6% over the past day, as the specter of Trump’s reinstated tariffs cast a shadow over global markets. The abrupt legal flip-flop by the U.S. Court of Appeals for the Federal Circuit, which temporarily stayed a previous ruling that nullified these tariffs, has kept the financial community on edge. Imposed under the 1977 International Emergency Economic Powers Act and cheekily dubbed “Liberation Day” duties by Trump, these tariffs have reignited trade tensions, sending ripples across the cryptocurrency landscape. For more on how traders are reacting to potential tariff deals, see our article on Bitcoin traders eyeing breakout to new highs.
Tariffs and Turmoil
The tariffs, reinstated on April 2, are targeting nearly all U.S. trading partners, and their continuity has sowed seeds of uncertainty in an already volatile market. Bitcoin, the flagship digital currency, slid below the $106,000 mark, while Ether succumbed to pressures, dipping under $2,700. The CoinDesk 20 index, a barometer for the largest cryptocurrencies by market cap, mirrored the downward trend, slipping by 4%.
Market analysts are weighing in on these shifts. Nick Ruck, director at LVRG Research, conveyed via Telegram that “the price of Bitcoin took a hit following the appeals court decision to uphold the tariffs, coinciding with disheartening GDP figures showing a contraction in the U.S. economy’s first quarter.” Ruck further noted, “Amid rising jobless claims and waning corporate profits, gold has surged as a safe harbor. Despite the Fed’s inflation concerns, I remain optimistic about Bitcoin’s rebound as investors seek stable value during turbulent phases.”
Cautious Markets and Crypto Dynamics
Caution seems to be the reigning sentiment, as the total cryptocurrency market cap holds steady at $3.42 trillion. Alex Kuptsikevich, the astute chief market analyst at FxPro, shared in an email to CoinDesk, “Cryptocurrencies appear to be ignoring the positive stirrings in the stock market, likely due to their association with tariffs and corporate earnings rather than influence from monetary supply changes.” Kuptsikevich observed that Bitcoin’s backpedal from its trading range’s zenith of $110K to a more comfortable $107K could dissipate local market overheating fears. This sentiment echoes the broader market analysis found in our Crypto Daybook Americas coverage.
This market dance unfolds against a backdrop of economic unease. The U.S. economy’s contraction in Q1, paired with rising unemployment claims, paints a picture of an economy wrestling with multiple forces. The crypto space, often seen as a hedge against traditional financial upheaval, seems to be caught in the crossfire of these macroeconomic shifts.
Historical Echoes and Future Gazes
Historically, the cryptocurrency market has shown resilience in the face of geopolitical and economic turbulence, often bouncing back stronger after periods of decline. The current situation, however, is layered with complexities. As investors and analysts alike navigate these choppy waters, the question remains whether this downturn is a temporary blip or indicative of deeper market corrections.
The interplay between tariffs, economic indicators, and investor sentiment will undoubtedly shape the trajectory of digital currencies in the months to come. With June 2025 just around the corner, all eyes are on potential policy shifts and market responses. As the dust settles, the crypto community is left pondering: Will Bitcoin and its ilk reclaim their upward momentum, or are we heading toward a new normal in digital finance? Only time will tell.
Source
This article is based on: Dogecoin Dives 9%; Cardano’s ADA, SOL Slump 6% as Renewed Tariff Fears Jolt Markets
Further Reading
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- Crypto Daybook Americas: Robinhood Earnings to Preview Trump’s ‘Damage’
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
