The crypto market rose on Friday after the Supreme Court of the United States ruled against tariffs introduced by Donald Trump. The decision gave investors hope and helped both crypto and stock markets recover from earlier losses.
Bitcoin climbed to around $68,200, while the total crypto market value rose to more than $2.3 trillion. Several smaller tokens also jumped, with some gaining over 6% during the day. The recovery showed renewed confidence, but gains remained modest.
The stock market also improved. The Dow Jones Industrial Average and the Nasdaq-100 both rose by more than 0.5%, reversing earlier declines. Investors reacted positively to the court ruling, which reduced uncertainty around trade policy.
Chief Justice John Roberts and the majority said Trump used emergency powers incorrectly when imposing tariffs. The court said only Congress has the authority to approve tariffs. However, some justices disagreed and warned the decision could limit presidential powers in trade matters.
Despite the gains, analysts warned the recovery may not last. Trump still has other legal tools to impose tariffs, though they may take longer to implement. This means trade tensions could return and pressure markets again.
Global tensions also remain a concern. Reports suggest rising military activity involving Iran, which controls the critical Strait of Hormuz. Any disruption there could push oil prices higher and increase inflation worldwide.
Higher inflation would make it harder for the Federal Reserve to cut interest rates. This could slow economic growth and reduce demand for risky assets like crypto.
At the same time, crypto demand remains weak overall. Bitcoin and Ethereum investment funds have seen large outflows in recent months. Futures trading activity has also dropped sharply, showing that many investors are still cautious despite the recent price increase.
For now, crypto has found short-term support. But ongoing political risks, global tensions, and weak demand mean the market’s recovery could face new challenges soon.
