The recent actions of the US Supreme Court have led to significant shifts in both political and market dynamics. On Friday, the Court invalidated former President Trump’s tariff policy, declaring his administration had acted unlawfully by imposing reciprocal tariffs. This decision prompted Trump to respond swiftly on Saturday, announcing an increase in temporary tariffs on nearly all imports, raising the rate from 10% to 15%.
Trump took to his social media platform, Truth Social, to express his views, claiming that the raise would be “effective immediately” and targeting countries he accused of having taken advantage of the US for decades without facing any consequences until his administration. This new round of tariffs comes on the heels of a ruling that undermined his previous economic measures.
Cryptocurrency markets, particularly Bitcoin and Ethereum, have shown notable resilience in the face of these developments. Following Trump’s announcement about the tariff increase, both cryptocurrencies demonstrated stability, with Bitcoin trading slightly up by nearly 2%, reaching approximately $68,273 by midday in New York, while Ethereum also saw an increase of about 2%, trading around $1,987. Despite these gains, Bitcoin’s year-to-date performance remains down.
Historically, announcements related to tariffs have led to turbulent reactions in crypto markets, with previous statements from Trump resulting in substantial losses. In April, for example, his speech on Liberation Day caused a significant drop in the prices of Bitcoin, Ethereum, and XRP. Subsequently, the markets managed a recovery but faced further shocks as Trump threatened actions against the European Union in May. Currently, both Bitcoin and Ethereum remain significantly below their all-time highs recorded in 2025, following a challenging period marked by drastic selloffs in the market and the most substantial liquidation event seen in the industry in October.
Additionally, the announcement regarding tariffs has some analysts questioning whether the era of ‘tariff shock’ is becoming a thing of the past, particularly as cryptocurrency markets appear to be stabilizing amid ongoing economic pressures. In recent weeks, Bitcoin and Ethereum have experienced downward trends, with Bitcoin reporting a 2% drop and Ethereum a 5% drop over the past seven days.
Moreover, cryptocurrency exchange-traded funds (ETFs) faced considerable redemptions, signaling investor caution amid price volatility. Data showed that US investors withdrew nearly $316 million from Bitcoin-focused funds in just one week, with Friday being the sole day reporting positive inflows. Meanwhile, Ethereum-focused ETFs saw losses exceeding $123 million. These significant redemptions often correlate with declining prices, suggesting a challenging climate for cryptocurrency investment.
The intertwining effects of legal rulings on economic policy and the resulting market behavior highlight the continuously evolving landscape of both US trade practices and the global cryptocurrency market, as investors seek to navigate these complex dynamics.
