Bitcoin dropped 1.2% to $107,721.60 by 01:43 ET (05:43 GMT), continuing a multi-day slide after briefly surpassing record highs above $110,000 earlier in the week. The decline comes amid a wave of profit-taking, as investors cash in on recent gains driven by optimism over crypto-friendly regulation under the Trump administration.
GameStop Corp.’s (NYSE:GME) disclosure that it had purchased over $500 million worth of Bitcoin failed to provide any upward momentum. The move, though notable, was largely shrugged off by the market.
Tariff Court Ruling Fails to Spark Crypto Rally
A federal court ruling that blocked former President Donald Trump’s sweeping trade tariffs had little positive effect on crypto prices, despite triggering broader risk-on sentiment in equities and other traditional markets.
The U.S. Court of International Trade ruled Wednesday that Trump had exceeded his authority when imposing tariffs on key trading partners, giving the administration ten days to comply. The decision initially buoyed market sentiment, with hopes that trade-related uncertainty might ease.
However, the White House’s prompt appeal of the ruling rekindled concerns. Analysts cautioned that prolonged legal battles could fuel further market volatility. Moreover, any court decision in favor of Trump could reignite the threat of elevated tariffs.
While cryptocurrencies are not directly tied to tariff policy, they have at times benefited from market uncertainty—especially earlier this year. But this dynamic failed to materialize in the latest episode, with Bitcoin and altcoins largely ignoring the court’s decision.
Profit-Taking Follows Rally on Regulatory Hopes
Bitcoin’s recent surge to all-time highs had been driven by speculation that a second Trump term could bring friendlier crypto regulations. Key to this outlook was progress on a stablecoin regulation bill moving through Congress.
But with those expectations already priced in, the asset has become vulnerable to selloffs, particularly in the absence of fresh bullish catalysts.
Vice President Vance Urges Bitcoin Adoption Amid China Rivalry
Speaking at a Bitcoin conference in Las Vegas, U.S. Vice President JD Vance reiterated the administration’s openness to regulatory clarity for crypto, urging the domestic industry to embrace oversight. Vance argued that the U.S. should deepen its adoption of Bitcoin, especially in contrast to China’s anti-crypto stance.
He praised Trump’s establishment of a national Bitcoin reserve as a strategic move, positioning crypto as a tool in geopolitical competition.
However, the administration’s growing crypto involvement has raised eyebrows. Critics have pointed to potential conflicts of interest, particularly in light of Trump-linked businesses participating in the digital asset space. The president’s $TRUMP memecoin has also drawn controversy, especially after he hosted a White House dinner attended by the token’s top holders.
Altcoins Follow Bitcoin Lower, Ethereum Bucks Trend
The broader crypto market mirrored Bitcoin’s downturn, with most major altcoins posting losses. XRP, Solana, and Cardano slipped between 0.4% and 2%.
Ethereum, the second-largest cryptocurrency by market cap, was a rare standout, rising 3.1% to $2,722.26. The rally came amid growing investor optimism over its strengthening technical setup and potential decoupling from Bitcoin’s influence.
Among meme coins, Dogecoin edged up 0.3%, while the $TRUMP token dropped 3% following the underwhelming White House dinner.
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