The U.S. Court of Appeals ruling against Trump’s tariffs removed a macroeconomic uncertainty that had weighed on risk assets, contributing to Bitcoin’s 2% rise post-announcement. By declaring the tariffs unconstitutional, the decision reduces trade war risks and potential inflation spikes from import taxes, improving conditions for growth-sensitive assets like crypto.
Market reaction shows increased correlation between crypto and traditional markets, with S&P 500 futures rebounding 0.4% alongside Bitcoin’s climb. The MOVE index hitting March lows signals reduced Treasury volatility, creating favorable conditions for crypto’s store-of-value narrative. Goldman Sachs’ subsequent recommendation to hedge with gold and oil reflects lingering inflation concerns despite the tariff resolution.
Long-term implications include potential regulatory clarity for crypto firms impacted by trade policies, particularly those operating cross-border payment solutions. The ruling may also influence how future administrations implement economic policies affecting digital assets, establishing judicial precedent against executive overreach in financial markets.
