Crypto Sinks After Trump Tariff Rejection, New Trade Tax

Supreme Court strikes down Trump tariffs; crypto markets tumble amid economic slowdown.

  • The U.S. Supreme Court ruled 6-3 on Friday that former President Trump’s “Liberation Day” tariffs exceeded his authority under existing law.
  • Major cryptocurrencies, including Bitcoin and Ethereum, faced a significant selloff on Sunday night, with over $400 million in long positions liquidated as Bitcoin crashed below $65,000.
  • Economic data shows a sharp slowdown, with U.S. GDP badly missing expectations for Q4 2025 and Bitcoin ETFs seeing nearly $300 million in net outflows last week.

The U.S. Supreme Court delivered a landmark ruling on Friday, declaring that former President Trump’s sweeping tariff policy exceeded executive authority. Consequently, cryptocurrencies initially saw a modest rally before a sharper selloff hit markets on Sunday evening.

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Chief Justice Roberts authored the majority opinion, stating the administration’s action would represent an unprecedented expansion of presidential power. However, Trump immediately announced a new 15% global tariff under a different legal statute. Bitcoin initially dipped to $66,900 before briefly climbing toward $67,800, according to the market analysis.

The immediate market reaction suggests this outcome was largely anticipated for weeks. Polymarket data reportedly placed a 74% probability on such a ruling by Friday morning. Meanwhile, analysts are divided on the longer-term implications for digital assets.

Stephen Coltman of 21Shares noted that “a negative ruling on tariffs could potentially hurt Treasuries and the dollar, while favoring stocks and crypto.” Conversely, Matthew Sigel from VanEck argued “reduced tariff revenues mean money printing and debasement will accelerate.” This debate frames crypto as both a risk-on asset and a monetary hedge.

Macroeconomic pressures are mounting, with disappointing GDP growth and sticky inflation. Consequently, Bitwise has warned of further Bitcoin Price weakness, citing the need for equity market stability. Data Tether” rel=”nofollow external noopener”>shows the circulating supply of Tether’s USDT has fallen by nearly $4 billion from its recent peak.

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