Bitcoin pops then drops as Supreme Court strikes down Trump tariffs
TL;DR
Bitcoin briefly surged 2% above $68,000 after the Supreme Court struck down Trump's tariffs, but quickly retreated to $67,000. The fleeting crypto gains contrasted with more sustained stock market increases amid stagflationary economic data showing slow growth and high inflation.
Key Takeaways
- •The U.S. Supreme Court struck down President Trump's tariffs in a 6-3 decision, citing lack of historical precedent and overreach of authority.
- •Bitcoin initially jumped about 2% to above $68,000 on the news but quickly reversed gains, returning to around $67,000 within minutes.
- •U.S. economic data showed stagflationary signals with 1.4% Q4 2025 GDP growth and 3% core PCE inflation, both worse than expected.
- •Crypto's volatile, fleeting price movements contrasted with more sustainable gains in traditional markets like the Nasdaq, which rose 0.6%.
- •XRP is consolidating around $1.42 with low volatility, potentially setting up for a breakout if it can reclaim key resistance levels.
What to know:
- The U.S. Supreme Court struck down President Trump's tariffs.
- The news quickly sent bitcoin higher by about 2% to above $68,000, but the gains proved fleeting, with BTC quickly returning to the $67,000 level.
- Earlier Friday, U.S. economic data showed slower than expected economic growth alongside higher than hoped inflation.
- The U.S. Supreme Court struck down President Trump's tariffs.
- The news quickly sent bitcoin higher by about 2% to above $68,000, but the gains proved fleeting, with BTC quickly returning to the $67,000 level.
- Earlier Friday, U.S. economic data showed slower than expected economic growth alongside higher than hoped inflation.
The U.S. Supreme Court on Friday struck down President Trump's tariff regime in a 6-3 decision.
"No President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope," the court ruling said.
"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.'"
Bitcoin knee-jerked about 2% higher on the news, rising past the $68,000 level. As has been typical in crypto lately, though, the gain was reversed within minutes, returning to just below $67,000 at the current time.
Crypto's fleeting gains stood in contrast to what's appearing more sustainable in stocks, with the Nasdaq rising 0.6% to a session high.
Stagflationary data
Earlier Friday, a batch of U.S. economic data showed signs of stagflationary impulses. The U.S. economy grew only a modest 1.4% in the final three months of 2025, the Commerce Department reported. Alongside core personal consumer expenditure prices rose 3% year-over-year, faster than the hoped for 2.9% and up from 2.8% previously.
On a yearly basis, the economy grew 2.2%, which is the slowest growth since Covid year 2020.
"Today’s economic data delivered a messy message of both hotter than expected inflation, and slower than anticipated growth," Art Hogan, chief market strategist at B. Riley Wealth, said. "The confusing message from today’s data confirms the current Fed bias to take their time with monetary policy."
- Bitcoin wallets holding less than 0.1 BTC have increased their share of supply to the highest since mid-2024 even as the price holds around the mid-$60,000s.
- Larger holders with 10 to 10,000 bitcoins — the whales and sharks that typically drive major moves — have reduced their positions since the October peak.
- The divergence supports choppy, fragile price action because retail demand alone cannot sustain rallies when big wallets are distributing into every recovery.
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