Crypto markets staged a cautious recovery on Friday after the U.S. Supreme Court ruled against Donald Trump’s tariffs. Bitcoin climbed to $68,200, and total market capitalization rose nearly 1% to over $2.3 trillion. Tokens such as Kite, Morpho, LayerZero, and Render each gained more than 6%. Equities also erased earlier losses, with the Dow Jones and Nasdaq 100 indices up over 0.5%.
7:3 Ruling: Tariff Power Belongs to Congress
In a landmark decision, Chief Justice John Roberts wrote that Trump erred by using emergency powers to impose tariffs, asserting that such authority rests with Congress. Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito dissented.
Short-lived Recovery? Trump Still Has Tools, Iran War Risk Looms
The bounce may prove fleeting. Despite the setback, Trump can fall back on other tariff mechanisms, albeit requiring lengthy investigations or with time limits. Meanwhile, Iran is a growing flashpoint. Reports say Trump has assembled the largest U.S. military buildup in the Middle East in years, and an attack could come as early as this weekend. Polymarket odds of a strike have spiked. Any conflict would risk disrupting the Strait of Hormuz, through which millions of barrels of oil pass daily, igniting inflation and complicating Fed rate cuts.
Crypto demand remains tepid. Futures open interest has collapsed from over $250 billion last year to below $100 billion. Bitcoin and Ethereum ETFs have bled billions in outflows in recent months. The combination of political uncertainty and waning liquidity suggests today’s rally is more a technical rebound than a genuine reversal.