Dogecoin Dives 9%; Cardano’s ADA, SOL Slump 6% as Renewed Tariff Fears Jolt Markets

Dogecoin (DOGE) plummeted 9%, while Cardano (ADA) and Solana (SOL) each declined 6% in the last 24 hours. This downturn followed the reinstatement of Trump-era tariffs, rekindling trade tensions.

A temporary stay, issued by the U.S. Court of Appeals for the Federal Circuit, reversed a lower court ruling that had struck down the tariffs. This allows the tariffs to remain in effect while the government appeals.

These tariffs, announced on April 2nd and dubbed "Liberation Day" duties by Trump, target nearly all U.S. trading partners and were imposed under the 1977 International Emergency Economic Powers Act.

Bitcoin (BTC) dipped below $106,000, and Ether (ETH) fell below $2,700 amidst the renewed uncertainty. The CoinDesk 20 (CD20), a liquid index tracking the largest cryptocurrencies by market capitalization, dropped 4%.

Nick Ruck, director at LVRG Research, commented via Telegram: "Bitcoin's price decline followed the appeals court's reinstatement of Trump's tariffs, coinciding with U.S. GDP figures showing economic contraction in the first quarter. Gold surged as jobless claims rose and corporate profits fell. Despite the Fed's continued inflation concerns, we remain optimistic about Bitcoin's rebound, anticipating investors seeking long-term value during market volatility."

Market sentiment remained cautious, with the total cryptocurrency market capitalization holding steady at $3.42 trillion.

Alex Kuptsikevich, chief market analyst at FxPro, offered insight via email to CoinDesk: "Cryptocurrencies appear unaffected by positive stock market movements, as their correlation lies with tariffs and company reports, rather than monetary supply. Bitcoin's retreat from the $110,000 trading range high to the $107,000 low effectively cools recent market overheating."