Bitcoin and Ethereum slipped Thursday after a U.S. federal appeals court temporarily reinstated President Donald Trump’s trade tariffs, injecting a fresh dose of uncertainty into financial markets already navigating macroeconomic headwinds.
Bitcoin Slides as Policy Risk Rattles Markets
Bitcoin dropped 2.7% to a low below $106,000, currently trading at $104,757, while Ethereum fell 3.8% to $2,621, according to CoinGecko. Despite the dip, Bitcoin remains up 11.5% over the past month.
This downturn followed a ruling by the U.S. Court of Appeals for the Federal Circuit, which paused a previous trade court decision that struck down Trump’s tariffs as unconstitutional. The legal development, combined with global policy risks, spurred institutional repositioning.
“This ruling is just another brick in the wall of economic uncertainty,” said Tracy Jin, COO of MEXC exchange.
Jin emphasized that the market’s response was less about panic and more about “uncertainty-adjusted” trading behavior, shaped by tariff risk, interest rate fluctuations, and global tensions.
ETF Inflows Snap: $347 Million Pulled in a Day
Adding to bearish momentum, U.S. spot Bitcoin ETFs recorded $347 million in net outflows on Thursday, the worst single-day exit since March 11, ending a 10-day inflow streak that had pulled in $4.26 billion.
- Fidelity’s FBTC: -$166.3M
- Grayscale’s GBTC: -$107.5M
- ARKB: -$89.2M
- BlackRock’s IBIT: +$125M (only ETF with inflows)
“These ETF outflows should not be seen as panic selling,” Jin added. “This is institutional repricing in real-time.”
Despite the outflows, BlackRock’s IBIT extended its inflow streak to 34 consecutive days, bringing in nearly $4 billion over two weeks, reflecting its growing lead among retail investors.
Outlook: Recovery Possible if Policy Clears
According to Ganesh Mahidhar of Further Ventures, ETF flows still reflect broader retail sentiment, while institutional capital remains cautious amid legal and policy risks.
“We’re seeing a temporary cooling due to lack of clarity. But once trade tensions ease and a tariff policy equilibrium is reached, crypto and other risk assets could rebound strongly,” Mahidhar told Decrypt.
As sentiment remains mixed, the market continues to watch developments around Trump’s tariffs, inflation data, and ETF momentum for the next direction.
