Bitcoin experienced a surge in value on Friday following a significant ruling from the Supreme Court regarding tariffs imposed during President Donald Trump’s administration. Initially, the digital asset, along with gold, faced a dip in market value after the decision was announced. However, Bitcoin subsequently rebounded and was trading at approximately $67,271, marking a 1% increase from the previous day, according to data from CoinGecko. The asset had briefly dropped to $66,900 after the ruling was disclosed at 10 a.m. ET, but it later climbed to nearly $67,800 before settling back down.
The Supreme Court ruled that many of Trump’s tariffs were enacted beyond his authority, specifically citing the International Emergency Economic Powers Act (IEEPA), a law established in 1977 that allows the president to manage certain foreign economic activities during national emergencies. Chief Justice John Roberts, writing for the majority in a 6-3 decision, commented that the Trump administration’s interpretation of the IEEPA would significantly expand presidential power over tariff policymaking without any legal precedent.
The implications of the ruling may resonate beyond just Bitcoin, as Trump’s tariffs have historically influenced international markets. Last year, the turbulence surrounding trade negotiations and tariffs caused Bitcoin to plummet from a high of $106,000 post-election to $76,300 in April. Although Trump has somewhat adjusted his hardline approach to ‘reciprocal’ tariffs, he has continued to threaten tariffs to navigate international trade.
While not all tariffs are affected by this ruling, the uncertainty stemming from such decisions has instigated ongoing geopolitical tensions and economic concerns during Trump’s second term, raising alarms about trade relations with allies and the potential for inflation spikes. This uncertainty has also supported a rise in gold prices, which increased by 1.8% to $5,090 per ounce on Friday after earlier trading at $5,000.
In response to the Supreme Court’s decision, Trump expressed his dissatisfaction, labeling it a “disgrace,” as reported by CNN from sources familiar with his remarks. He also signaled the existence of a backup plan moving forward.
Justice Brett Kavanaugh, in his dissenting opinion, warned that the ruling could lead to complicated processes regarding whether the White House will need to issue refunds for billions in collected tariff revenues. He suggested that if lower courts find it necessary, the resultant process could be a “mess.”
