The cryptocurrency market experienced a cautious recovery on Friday after the US Supreme Court ruled against Donald Trump’s tariffs.
Summary
- The cryptocurrency market rose after the Supreme Court struck down Donald Trump’s tariffs.
- Bitcoin and most tokens rose modestly, while the stock market erased earlier losses.
- The ongoing recovery may be short-lived as Trump has tools to implement tariffs.
Bitcoin (btc) price rose to $68,200, while the market capitalization of all coins increased by about 1% to over $2.3 trillion. Some of the winners in the cryptocurrency market were Kite, Morpho, LayerZero and Render, which rose more than 6%.
The stock market also erased previous losses: the Dow Jones and Nasdaq 100 indices rose more than 0.50%.
In a ruling, the majority, led by Chief Justice John Robert, said Trump was wrong to use the emergency. powers when issuing tariffs. They argued that the power to issue tariffs belonged to Congress. Justices Clarence Thomas. Brett Kavanaugh and Samuel Alito disagreed.
Crypto Market Gains Could Be Short-Lived
Still, gains in the stock and cryptocurrency markets may be short-lived. For one thing, while the ruling is a major setback for Donald Trump, he has other tools to implement tariffs that will achieve a similar goal. The only challenge is that some of those options require lengthy research, while others are time-limited.
Furthermore, the tariff resolution will likely be undermined by the potential war in iran. Media reports suggest that Trump has assembled the largest military team and officials in the Middle East in years. They also suggest the attack could happen this weekend. The odds of an attack on Polymarket have increased in recent days.
An attack on Iran is risky because the country largely controls the Strait of Hormuz, through which millions of barrels of oil pass each day. It would lead to higher inflation and make it harder for the Federal Reserve to cut interest rates.
At the same time, cryptocurrency prices continued to see weak demand, with futures open interest and ETF outflows accelerating. Bitcoin and Ethereum ETFs have lost billions of dollars in value in recent months. Futures open interest has fallen from over $250 billion last year to less than $100 billion today.
