Bitcoin’s Wild Ride: BTC Price Surges Then Dumps After Supreme Court Strikes Down Trump Tariffs

Bitcoin’s Wild Ride: Surges Then Dumps After

In a shocking turn of events, Bitcoin experienced a quick spike and then a fast drop. The trigger? A major U.S. Supreme Court decision that ended President Trump’s big tariff plans. This news sent BTC price up 2% past $68,000 before it fell back below $67,000 in minutes. Why did this happen, and what does it mean for crypto traders?

The Supreme Court Ruling That Shook Markets

On Friday, the U.S. Supreme Court made a 6-3 decision to strike down President Trump’s tariff regime. The court said these tariffs went too far.

“No President has invoked the statute to impose any tariffs, let alone tariffs of this magnitude and scope,” the ruling stated. “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.'”

Tariffs are taxes on imports. Trump wanted them to protect U.S. jobs and fight unfair trade. But the court ruled he did not have the power to do this on such a large scale. This could ease trade tensions and lower costs for goods from China and other countries.

For crypto, less trade war means less fear in risk assets like Bitcoin. Investors first cheered the news with a quick buy-up.

Reaction: Why the Quick Reversal?

Bitcoin price jumped about 2% right after the ruling. It broke past the key $68,000 level, a spot many traders watch closely. But as usual in crypto lately, the gain did not last.

Within minutes, BTC fell back to just under $67,000. This knee-jerk move shows how volatile crypto can be. Traders often react fast to headlines but then sell on second thoughts.

• Support levels: Watch $66,500 as next support if it drops more.
• Resistance: $68,000 remains a wall for bulls.
• Volume: Low volume on the spike suggests weak conviction.

Unlike stocks, crypto lacks big institutional money to hold gains. Bitcoin’s quick dump highlights its sensitivity to macro news.

Stagflation Signals from Fresh U.S. Economic Data

Earlier that day, U.S. economic reports painted a worrying picture. The Commerce Department said the economy grew just 1.4% in the last three months of 2025. That’s slow.

On a full year basis, growth was 2.2% – the slowest since the COVID year of 2020. At the same time, inflation heated up. Core personal consumer expenditure (PCE) prices rose 3% year-over-year. That’s higher than the expected 2.9% and up from 2.8% before.

Stagflation means slow growth plus high inflation. It’s tough for markets.

“Today’s economic data delivered a messy message of both hotter than expected inflation, and slower than anticipated growth,” said Art Hogan, chief market strategist at B. Riley Wealth. “The confusing message from today’s data confirms the current Fed bias to take their time with monetary policy.”

The Federal Reserve now faces pressure. Higher inflation means no rush to cut rates. Higher rates hurt Bitcoin, as it competes with safe yields like bonds.

Stocks Hold Gains – Why Crypto Lags Behind

While Bitcoin gave back its gains, stocks did better. The Nasdaq climbed 0.6% to a new high for the session. Tech stocks like Apple and Nvidia led the way.

Why the difference? Stocks have more steady buyers like pension funds. Crypto is still driven by retail traders and whales who flip fast.

This gap shows crypto’s growing pains. As Bitcoin matures, it may act more like stocks.

What This Means for Crypto Investors

The tariff strike-down removes one risk. No big tariffs could boost global trade and risk appetite. But stagflation worries loom larger.

Fed Chair Jerome Powell has said they need more data before cuts. With PCE at 3%, rate cuts may wait until mid-2026. Bitcoin thrives on cheap money, so delays could cap upside.

Key levels to watch for BTC:

1. $67,500: Immediate support.
2. $70,000: Next big target if bulls return.
3. $65,000: Danger zone on breakdown.

ETF inflows remain strong, with BlackRock’s IBIT adding $500M last week. This could cushion dips.

Altcoins in Focus: XRP Hits Low Volatility

Not all crypto acted the same. XRP saw volatility drop to 2024 lows. Technical charts show a compression pattern.

Traders eye $1.39 as key support. $1.44 acts as resistance. Break above could target $1.50 to $1.62. Ripple’s legal wins keep XRP in play for payments.

What’s Next for Bitcoin and Crypto?

Friday’s action sums up 2025 so far: Headlines drive swings, but macro rules. Watch next week’s Fed minutes and jobs data. A soft landing could lift BTC to $75K. Stagflation fears might test $60K.

Stay tuned for more crypto news. What do you think – buy the dip or wait? Share in comments below!

Price data as of publication. Markets change fast – always DYOR.

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