Crypto Market Cap Drops 1.5% to $3.35 Trillion Amid U.S. Tariff Uncertainty

Most cryptocurrencies are trading lower today as market uncertainty grows following a U.S. court’s decision to strike down President Donald Trump’s reciprocal tariffs. The global crypto market cap has fallen to $3.35 trillion, though investor sentiment remains in the “Greed” zone with a score of 61 on the Fear & Greed Index.

The market jitters stem from a recent U.S. trade court ruling that deemed Trump’s “Liberation Day” tariffs illegal. This development raised fresh concerns about the stability of the U.S. trade policy and whether $16 billion in collected tariffs might have to be refunded. However, in a quick turn of events, a federal appeals court has temporarily paused the lower court’s ruling, allowing Trump’s tariffs to stay in effect for now. While markets initially responded positively, those gains quickly faded.

Bitcoin, which had rallied earlier, slipped below $105,000 and briefly tested $104,600. According to popular analyst Altcoin Sherpa, although Bitcoin lost support at the $106K level, he believes the overall trend remains bullish. “There’s strong support around $104K, and this green zone should trigger a bounce soon,” he said, adding that volatility is likely to continue in the short term. At the time of writing, Bitcoin has climbed slightly, trading at $106,000. If Bitcoin can maintain the upward trend and break through resistance levels near $110,355, it might signal the start of an upside move. However, for now, the pressure remains on the downside.

Important support clusters are between $103,600 and $104,400 — a region that combines previous swing lows and key Fibonacci levels. A sharp drop below this could open the door to further declines toward $102,500 and even $100,750. On the upside, any bounce is expected to be temporary unless Bitcoin can decisively break above key resistance.

Ethereum, down to $2,626, has also cooled off after a stronger start to the week. Solana and XRP, both of which recently saw double-digit weekly gains, are retreating from their highs. Dogecoin, which had surged over 17% in the past week, is also losing steam. Despite flashes of individual altcoin strength, the Altcoin Season Index remains low at 21/100. This indicates that Bitcoin continues to dominate market attention and capital flow. The coming days are expected to remain volatile as traders digest ongoing legal developments concerning U.S. trade policy and monitor critical technical levels across the crypto market.

The crypto market experienced a significant downturn as the global market cap slid to $3.35 trillion, following a U.S. court ruling that temporarily allowed President Trump's tariff agenda to proceed. This decision came after a federal trade court had initially blocked the tariffs earlier in the week, creating a back-and-forth legal battle that has left the future of these tariffs uncertain. The volatility in the legal landscape has sparked widespread uncertainty, which has had a ripple effect on the crypto market.

Bitcoin, the leading cryptocurrency, tested the $104,000 support level, while altcoins lagged behind, reflecting the broader market sentiment. The appeals court's decision to temporarily reinstate the tariffs added to the global market uncertainty, with rising trade tensions triggering a sell-off in the crypto market. The legal ping-pong between different U.S. courts has left investors and traders in a state of flux, unsure of how the situation will ultimately resolve.

The initial ruling by a federal court that blocked Trump's tariffs had briefly improved sentiment in the crypto markets. However, the subsequent appeals court decision to reinstate the tariffs has reversed this trend, leading to a decline in Bitcoin's price and a broader correction in altcoins. The legal battle over Trump's tariff powers continues, with the possibility of the President appealing to the Supreme Court as early as Friday. This ongoing uncertainty is likely to continue to impact the crypto market, as investors grapple with the potential implications of the tariffs on the global economy.

The court ruling limiting Trump's tariff powers had initially sparked hope that it could stabilize macroeconomic volatility and rekindle investor interest. However, the appeals court's decision to reinstate the tariffs has dampened this optimism, leaving the crypto market in a state of limbo. The legal battle over Trump's tariff agenda is far from over, and the outcome remains uncertain. As the situation develops, the crypto market will continue to be closely watched for any signs of recovery or further decline.