Court struck down Trump IEEPA tariffs; Bitcoin rose about 2%
The U.S. Supreme Court, in Learning Resources, Inc. v. Trump, held that the International Emergency Economic Powers Act (IEEPA) does not authorize a president to impose broad tariffs, effectively striking down a large portion of the prior tariff program. According to the U.S. Supreme Court, the decision narrows emergency economic powers in the trade arena and re-centers tariff authority with Congress.
Bitcoin (BTC) moved higher in the immediate aftermath as traders recalibrated the outlook for trade-related inflation and policy uncertainty. The move came alongside a broader improvement in risk sentiment as markets weighed the implications for import costs and future executive leeway on trade.
Why the ruling matters for inflation, dollar, and risk assets
Tariffs raise importer costs that often pass through to consumer and business prices; removing or limiting those levies can ease forward inflation pressures. If inflation expectations moderate, the usual channels point to potential relief on real rates and a softer U.S. dollar, conditions that tend to support risk assets, including equities and crypto.
The ruling also reduces a source of policy unpredictability by clarifying that IEEPA cannot be used as a general tariff tool. After outlining these channels, Stephen Coltman, Head of Macro at 21Shares, said the decision is likely to “weaken Treasury yields and the U.S. dollar, while favoring risk assets.”
Immediate market reaction: Bitcoin above $68K; stocks and yields rose
Bitcoin jumped by roughly 2% to above $68,000 on the headlines before some gains faded, as reported by CoinDesk. Crypto and global stocks rose in tandem, according to Yahoo Finance, while benchmark U.S. 10-year yields also moved higher intraday, reflecting a risk-on impulse and fast positioning adjustments.
Price action remained choppy into the close as traders balanced lower prospective import costs against questions about how quickly trade flows and corporate margins might adjust. Market breadth in crypto improved alongside the BTC move, but leadership rotated and intraday volatility stayed elevated.
What to watch: DXY, 10Y yields, ETF flows, funding
The next leg likely depends on how the U.S. Dollar Index (DXY) and 10-year Treasury yields settle once the legal news is fully absorbed. A sustained softer dollar and easier real yields would reinforce the pro-risk setup; a reversal would challenge it.
Flows and microstructure matter. Watch U.S. spot Bitcoin ETF net creations/redemptions for evidence of real-money demand, and track perpetual funding/basis for signs of overheating or healthy risk transfer. Monitoring import price indices and input-cost components in upcoming PMIs can help gauge whether tariff relief filters into disinflation over the coming weeks.
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