Bitcoin’s Wild Ride: Surges Then Dumps After Supreme Court Strikes Down Trump Tariffs
In a shocking turn of events, Bitcoin experienced a quick spike and then a fast drop. The trigger? A major U.S. Supreme Court decision that ended President Trump’s big tariff plans. This news sent BTC price up 2% past $68,000 before it fell back below $67,000 in mere minutes. Why did this happen, and what does it mean for crypto traders?
The Supreme Court Ruling That Shook Markets
On Friday, the U.S. Supreme Court made a 6-3 decision to strike down President Trump’s tariff regime. The court stated that these tariffs went too far, declaring:
“No President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope. That ‘lack of historical precedent,’ coupled with the ‘breadth of authority’ that the President now claims, suggests that the tariffs extend beyond the President’s ‘legitimate reach.’”
Tariffs are taxes on imports. Trump proposed them to protect U.S. jobs and fight against perceived unfair trade. However, the court ruled he did not have the authority to impose such extensive tariffs. This decision could ease trade tensions and lower costs for goods from China and other countries.
For crypto, a reduction in trade war fears translates to less uncertainty in risk assets like Bitcoin. Investors initially celebrated the news by quickly buying up BTC.
BTC Price Reaction: Why the Quick Reversal?
Bitcoin price jumped approximately 2% right after the ruling, breaking past the significant $68,000 level—a point keenly observed by traders. Yet, as we’ve seen in recent months, such gains were short-lived.
Within minutes, BTC retraced back to just under $67,000. This knee-jerk reaction epitomizes the volatility inherent in cryptocurrency markets. Traders often rush to act on headlines but may quickly reassess and sell their positions.
- Support levels: Watch $66,500 as the next line of defense if the price drops further.
- Resistance: $68,000 remains a crucial barrier for bullish traders.
- Volume: The low trading volume accompanying the spike indicates weak conviction among buyers.
Unlike equities, the crypto market is less supported by institutional investment, which can help maintain gains. Bitcoin’s rapid sell-off highlights its sensitivity to macroeconomic news.
Stagflation Signals from Fresh U.S. Economic Data
On the same day, U.S. economic reports presented a disconcerting view. The Commerce Department indicated that the economy grew just 1.4% in the last quarter of 2025—a notably slow pace.
For the entire year, growth was documented at 2.2%, marking the slowest expansion since the pandemic year of 2020. Compounding this issue, inflation surged. Core personal consumer expenditure (PCE) prices increased by 3% year-over-year, surpassing expectations of 2.9% and rising from 2.8% previously.
Stagflation, characterized by stagnating economic growth alongside rising inflation, poses a challenge for markets.
“Today’s economic data delivered a messy message of both hotter than expected inflation, and slower than anticipated growth,” remarked Art Hogan, chief market strategist at B. Riley Wealth. “The confusing message from today’s data confirms the current Fed bias to take their time with monetary policy.”
This situation puts pressure on the Federal Reserve, as rising inflation diminishes the likelihood of immediate rate cuts. Higher interest rates can negatively impact Bitcoin and similar assets, which battle against safer yield options like bonds.
Stocks Hold Gains – Why Crypto Lags Behind
While Bitcoin folded its gains, stock markets displayed stronger performances. The Nasdaq rose 0.6% to a new session high, led by tech giants like Apple and Nvidia.
What accounts for this disparity? Stocks benefit from more stable buyer bases, like pension funds, providing them with a level of buy-and-hold support. In contrast, the crypto market remains heavily influenced by retail traders and whales who are quick to flip positions.
| Asset | Initial Move | Current Status |
|---|---|---|
| Bitcoin (BTC) | +2% to $68K | -0.5% below $67K |
| Nasdaq | +0.6% | Holding gains |
| S&P 500 | +0.3% | Stable |
This gap underscores the growing pains of cryptocurrency. As Bitcoin matures, it may start to mimic traditional stock behavior more closely.
What This Means for Crypto Investors
The Supreme Court’s decision to strike down tariffs removes one layer of risk, potentially fostering an environment conducive to global trade and enhancing risk appetite. However, concerns surrounding stagflation loom larger.
Fed Chair Jerome Powell has indicated that more data is necessary before considering rate cuts. With PCE at 3%, any rate cuts could be pushed back until mid-2026. Bitcoin typically thrives on the availability of cheap money, so such delays could cap potential gains.
Key levels to watch for BTC are:
- $67,500: Immediate support level.
- $70,000: A significant target should bulls regain momentum.
- $65,000: A critical danger zone if the price breaks down.
Notably, ETF inflows remain robust, with BlackRock’s IBIT adding $500 million just last week. This influx could provide a buffer against steep drops.
Altcoins in Focus: XRP Hits Low Volatility
Not all cryptocurrencies reacted similarly. XRP experienced a drop in volatility, hitting its lowest point for 2024. Technical analysis shows a compression pattern forming.
Traders are eyeing $1.39 as critical support, while $1.44 serves as resistance. A breakthrough above $1.44 could aim for targets between $1.50 and $1.62, with Ripple’s legal victories keeping XRP’s profile high in payment discussions.
What’s Next for Bitcoin and Crypto?
Friday’s market activity encapsulates trends observed in 2025: headlines induce rapid movements, but macroeconomic factors ultimately dictate outcomes. Important indicators to monitor include the upcoming Fed minutes and employment data. A soft landing scenario could potentially push Bitcoin towards $75,000, whereas fears of stagflation may test support around $60,000.
Stay tuned for more crypto news. What do you think – buy the dip or wait? Share your thoughts in the comments below!
Price data as of publication. Markets change fast – always conduct your own research (DYOR).
Discuss this news on our Telegram Community. Subscribe to us on Google News and do follow us on Twitter @Blockmanity.
Did you like the news you just read? Please leave a feedback to help us serve you better.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity’s role is to inform the cryptocurrency and blockchain community about what’s happening in this space. Please do your own due diligence before making any investments. Blockmanity won’t be responsible for any loss of funds.
