Key Details of the Supreme Court Decision
On February 20, 2026, the Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not grant the president authority to impose sweeping tariffs. Chief Justice John Roberts emphasized that the power to tax lies with Congress, rendering the tariffs unconstitutional. This decision invalidated billions in tariffs and opened the door for potential refunds to businesses that had paid these duties.
Bitcoin and the Crypto Market’s Sensitivity to Tariffs
Historically, the cryptocurrency market has exhibited sensitivity to macroeconomic policies, including trade tariffs. For instance, in early 2025, Bitcoin experienced a sharp decline following the announcement of new tariffs on Canada, Mexico, and China. The market’s reaction underscored the interconnectedness between traditional economic policies and digital asset valuations.
Immediate Market Reaction
In the immediate aftermath of the Supreme Court’s decision, Bitcoin’s price remained relatively stable, trading around $68,000. This stability suggests that the market had potentially anticipated the ruling or viewed it as a corrective measure to previous policies. However, the long-term impact remains uncertain. The removal of tariffs could lead to a strengthening U.S. dollar, which might exert downward pressure on Bitcoin prices. Conversely, increased economic stability and investor confidence could bolster demand for digital assets.
Policy and Political Reactions
President Trump’s response to the ruling was swift and defiant. He criticized the decision and announced plans to impose a new 10% global tariff under a different legal framework. This move introduces further uncertainty into the economic landscape, potentially influencing investor behavior in both traditional and digital markets.
Bottom Line
The Supreme Court’s ruling marks a pivotal moment in U.S. trade policy, emphasizing the constitutional balance of powers. For the cryptocurrency market, it serves as a reminder of the sector’s vulnerability to macroeconomic policies and the importance of staying attuned to geopolitical developments. As the situation evolves, market participants will need to navigate the complexities introduced by shifting trade policies and their cascading effects on digital asset valuations.
