Markets whipsawed after the U.S. Supreme Court scrapped President Donald Trump’s tariff regime, with the bitcoin price spiking briefly before sellers quickly took control.
Summary
Supreme Court overturns Trump tariffs
The U.S. Supreme Court on Friday struck down President Donald Trump‘s tariff regime in a 6-3 decision, triggering an immediate reaction across risk assets. However, as has been typical in crypto markets in recent months, even a modest move higher drew rapid selling pressure.
“No President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope,” the court ruling said. Moreover, the justices highlighted that the structure of the law did not support such a sweeping use of executive power.
“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,'” the decision added. The Supreme Court tariffs case had been closely watched by traders looking for clues on trade policy and growth.
Bitcoin pops above $68,000, then fades
Bitcoin reacted instantly to the ruling, with BTC jumping about 2% and breaking above the $68,000 mark within minutes of the headline. That said, the move higher was very short-lived as sellers moved in almost immediately.
The btc price movement saw BTC briefly clear resistance, only to slide back to just below $67,000 at the current time. This quick reversal underscored how the bitcoin price remains highly sensitive to macro and policy shocks, but still struggles to sustain upside follow-through.
Crypto traders have repeatedly faded post-news rallies in recent weeks. However, the sharp intraday swings continue to offer opportunities for short-term participants, even as longer-term investors focus more on growth and inflation dynamics.
U.S. stocks also rose on the tariff news, but major indices quickly returned to roughly unchanged levels on the session. Moreover, equity traders appeared more focused on the latest batch of economic numbers than on the legal victory.
Stagflation risk signs in U.S. economic data
Earlier Friday, a run of U.S. economic data pointed to emerging stagflation risk signs. The Commerce Department reported that the U.S. economy grew only a modest 1.4% in the final three months of 2025, reinforcing concerns about slowing momentum.
At the same time, core personal consumer expenditure prices rose 3% year-over-year, above the hoped-for 2.9% and up from 2.8% previously. However, inflation running hotter than expectations while growth cools poses a challenge for the Federal Reserve’s policy path.
On a yearly basis, the economy expanded 2.2%, marking the slowest pace since Covid year 2020. That said, the combination of weaker growth and firmer prices has traders debating how long the Fed can delay rate cuts without tightening financial conditions further.
“Today’s economic data delivered a messy message of both hotter than expected inflation, and slower than anticipated growth,” said 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.”
Macro backdrop keeps crypto on edge
For digital assets, the mix of restrictive policy, slower growth and sticky inflation leaves markets vulnerable to headline shocks. Moreover, every fresh ruling or data release is feeding into narratives about global trade, liquidity and risk appetite.
Friday’s brief spike following the trump tariff ruling underscored how quickly sentiment can turn. However, with traders still digesting stagflation concerns and the Fed’s cautious stance, sustained breakouts across Bitcoin and other major tokens remain elusive.
Overall, the swift pop-and-drop in crypto and equities after the court decision shows that macro forces, not just legal or political headlines, are steering price action as markets move deeper into 2026.
In summary, the Supreme Court’s dismantling of Trump’s tariffs sparked a quick rally across risk assets, but persistent growth and inflation worries soon pulled markets, including Bitcoin, back to more cautious levels.
