US financial markets and cryptocurrencies rose after the Supreme Court struck down former President Donald Trump’s sweeping global tariffs, removing a major source of economic uncertainty.
The court ruled that President Trump overstepped his authority by using emergency powers to impose sweeping tariffs without Congressional approval. The decision limits the president’s ability to unilaterally reshape trade policy and restores Congress as the primary authority on tariffs.
Supreme Court restores Congressional control over tariffs
The ruling will immediately reshape the balance of power in U.S. economic policymaking.
Tariffs imposed under the emergency authority targeted imports from multiple countries and generated billions of dollars in revenue.
Businesses and industry groups objected to the move, saying it would increase costs and disrupt supply chains. The Supreme Court’s decision prohibits similar tariffs unless explicitly authorized by Congress.
Stocks and cryptocurrencies rise as trade uncertainty eases
The market reacted quickly.
The S&P 500 index rose about 0.40% and the Nasdaq index rose about 0.70%, indicating renewed investor confidence. Technology stocks led the rally, reflecting rising expectations for economic growth and stability.
Meanwhile, the global cryptocurrency market capitalization has risen to about $2.38 trillion, with Bitcoin trading near $67,000 due to recent volatility.
Gold briefly fell following this decision, but recovered to reflect changes in risk sentiment.
Market reactions reflect an important change: reduced trade uncertainty. Tariffs often act like taxes on imported goods, raising prices and slowing economic activity.
Removing the threat of widespread tariffs reduces inflation risk and improves liquidity expectations, both of which support risk assets.
This is particularly relevant to cryptocurrencies.
Bitcoin and other digital assets are highly sensitive to global liquidity and investor confidence. When macroeconomic uncertainty decreases, capital tends to flow back into riskier assets.
The rebound in cryptocurrencies, along with stocks, suggests investors are regaining confidence after weeks of geopolitical and economic stress.
However, the decision also highlights the seriousness of political tensions. The ruling limits the president’s power and strengthens Congress’ constitutional control over tariffs. This could dampen future trade actions, but it could also reduce sudden policy shocks that destabilize markets.
Stability in global trade and economic policy is generally positive for the crypto market. Although geopolitical risks remain, the Supreme Court’s decision removes one macro threat.
In the short term, that shift appears to be supporting Bitcoin and the broader digital asset market.
