A new legal twist regarding Donald Trump’s tariffs triggered a drop in the crypto market, as investors reacted to growing uncertainty in the macroeconomic environment.
What Happened?
Bitcoin dropped nearly 3% on Thursday after the U.S. Court of Appeals temporarily reinstated tariffs introduced by former President Donald Trump. The decision came just hours after another court had ruled them unconstitutional.
The rulings and ongoing bans issued by the Court of International Trade are temporarily stayed while we review the case.
reads the May 29 decision.
The case consolidates two ongoing appeals, allowing the government to challenge the previous ruling that overturned the tariffs imposed under the International Emergency Economic Powers Act of 1977.
If this stands, it will destroy presidential authority — the presidency will never be the same again.
Trump posted on Truth Social.
How Does This Impact Bitcoin?
Bitcoin fell 2.7%, reaching a daily low below $106,000. Still, the cryptocurrency remains up 11.5% over the past month, according to CoinGecko.
On decentralized prediction platform Myriad, 51% of participants believe Bitcoin will hold above $106,000 through June 1, signaling relatively neutral sentiment.
What About Other Cryptocurrencies?
- Ethereum (ETH) dropped 3.8% to $2,621
- Solana (SOL), XRP, and Binance Coin (BNB) also posted similar losses
What Are Analysts Saying?
According to Tracy Jin, COO at MEXC Exchange:
This court decision is just another brick in the wall of economic uncertainty… The market isn’t falling from lack of demand, but rather as a reaction to political and geopolitical risks.
ETF Flows Reverse Direction
Amid the court ruling, U.S. spot Bitcoin ETFs ended a 10-day streak of positive net inflows, posting a $347 million outflow on Thursday — the largest since March 11.
- Fidelity’s FBTC: -$166.3 million
- Grayscale GBTC: -$107.5 million
- ARKB: -$89.2 million
Only BlackRock’s IBIT saw inflows, adding $125 million and extending its streak to 34 consecutive days of net gains.
Institutional Reassessment, Not Panic
Analysts emphasize this is not panic. As Jin noted:
This is a real-time institutional revaluation.
Ganesh Mahidhar of Further Ventures added:
Uncertainty around trade policy pulls capital away from risk assets, but sentiment could recover quickly once clarity is restored.
Conclusion:
The crypto market downturn reflects renewed uncertainty over U.S. economic and trade policy. While ETF flows show hesitation, analysts remain calm — and some even expect a rebound once clarity emerges on the future of the tariffs.
Frequently Asked Questions
Find answers to the most common questions below.
Because of a U.S. court decision that temporarily reinstated Trump-era tariffs, sparking uncertainty in the broader financial markets and triggering short-term crypto corrections.
Yes — on the same day, U.S. spot Bitcoin ETFs saw a $347 million net outflow, ending a 10-day streak of positive inflows. Only BlackRock’s IBIT continued to see gains.
Analysts view this as a macro-driven correction rather than panic selling. Most believe sentiment could quickly improve if trade policy direction becomes clear.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
