A swift legal reversal unfolded as the U.S. Court of Appeals for the Federal Circuit issued a temporary stay on Wednesday’s ruling that had invalidated Trump-era tariffs, allowing these duties to remain in effect while the government pursues an appeal.

The news sent shockwaves through the crypto market: Dogecoin (DOGE) plunged 9%, while Cardano’s ADA and Solana’s SOL each dropped by 6% over the past day, as concerns over revived trade tensions intensified.

These tariffs, imposed under the 1977 International Emergency Economic Powers Act and introduced on April 2—referred to by Trump as “Liberation Day” tariffs—affect nearly all of America’s trading partners.

Bitcoin (BTC) saw its price dip below $106,000, and Ethereum’s ether (ETH) fell beneath $2,700 amid the unsettled market conditions. The CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market capitalization, declined 4%.

Nick Ruck, director at LVRG Research, commented in a Telegram message, “The reinstatement of tariffs weighed heavily on Bitcoin’s price, compounded by disappointing U.S. GDP data showing a contraction in the first quarter.”

Ruck added, “Gold prices surged as unemployment claims rose and corporate profits declined. Despite the Federal Reserve’s continued focus on inflation risks, we believe Bitcoin will recover as investors seek resilient, long-term assets during market turbulence.”

Overall, crypto market sentiment remained cautious with total capitalization stable at $3.42 trillion.

Alex Kuptsikevich, chief market analyst at FxPro, told CoinDesk, “Cryptocurrencies are mostly ignoring positive stock market moves, as those are driven by tariff news and company earnings, not changes in monetary policy or liquidity.”

He observed, “Bitcoin’s pullback from around $110,000 down to $107,000 is a healthy reset that relieves local market overheating pressures.”