Supreme Court Nixes Trump Tariffs, Igniting Bitcoin Surge Past $68K

In a pivotal 6-3 ruling on February 20, 2026, the U.S. Supreme Court declared President Trump's broad tariffs unconstitutional, exceeding his authority under the International Emergency Economic Powers Act.1 Bitcoin responded with a sharp 2% rally, peaking above $68,000 before easing back, as traders embraced the lift in trade war uncertainty.2 This decision arrives amid Trump's fresh push for 10% global tariffs, setting the stage for ongoing policy battles.

Chief Justice John Roberts led the majority in emphasizing Congress's exclusive taxing powers under Article I of the Constitution, invalidating over $133 billion in tariff revenues that may now demand refunds.2 The tariffs, slapped on imports from key partners citing deficits and security threats, had fueled debates on economic drag, with U.S. growth dipping to 2.2% in 2025 amid stubborn 3% inflation.2 CoinDesk analysis highlights how this shifts Washington's gaze from crypto reforms, like the Digital Asset Market Clarity Act, potentially stalling Senate progress amid tariff skirmishes.1 Pro-Trump Senator Bernie Moreno blasted the verdict as outrageous, arguing it weakens America's hand against unfair trade hurting workers. Meanwhile, critics like Senator Elizabeth Warren point to household costs exceeding $1,000 annually from prior duties. For crypto markets, Bitcoin Magazine notes the rally stems from restored liquidity and risk appetite, with experts at 21Shares and VanEck warning of dollar weakness and ballooning deficits positioning BTC as a debasement hedge. Prediction markets had leaned toward this outcome, muting broader shocks. Yet fiscal holes from lost revenues could pressure bonds, indirectly favoring hard assets like Bitcoin.

Easing tariff tensions floods liquidity into riskier plays, propping up crypto prices short-term and stabilizing Bitcoin around the $67,000-$68,000 band. Crypto traders benefit from dialed-back volatility, testing dip-buying strategies amid heightened institutional interest. However, Trump's alternative tariff plans loom, capping the relief and underscoring persistent geopolitical risks for global markets.

The Supreme Court's tariff smackdown offers crypto a breather, but political crossfire persists. Traders should eye congressional pushback and Fed signals for the next leg. In uncertain times, Bitcoin's resilience shines as a portfolio anchor.

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