On Feb. 20, the Supreme Court sent shock waves throughout the global economy — and President Donald Trump’s White House — by ruling that Trump’s controversial tariff policy was not legal, and that Trump had exceeded his constitutional authority by declaring them.
The high court’s ruling essentially negates Trump’s entire tariff policy, and the Supreme Court’s decision will be felt by America and its global trade partners alike. It could also have an impact on investors. Read on for more details about the tariff ruling and its impact.
Impact on Crypto
Even the crypto markets have been impacted by this consequential decision. CoinDesk reported that bitcoin initially popped nearly 2% above $68,000 following the tariff ruling. Those gains were quickly sold off as traders began to gauge the broader global implications of the tariff strike down.
Crypto markets, including bitcoin, began to slide — especially after President Trump announced an all-new 15% global tariff. According to CNBC, bitcoin fell below $63,000 on Feb. 24 as investors dealt “with escalating tariff tensions and broader geopolitical risks.”
Read More: I Asked ChatGPT To Explain Crypto Like I’m 12 — Here’s What It Said
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What Does This Mean for Crypto Investors?
For crypto investors, now is a time of heightened volatility, and thus caution is required. The uncertainty over the future of America’s trade policy, the litigation over tariff refunds and overall shifting fiscal dynamics are sure to increase crypto market risk. That said, investors had largely priced in the legal outcome to Trump’s battle for tariffs, meaning that macro and liquidity factors likely still remain the dominant drivers of the crypto market.
Now is a good time to reassess your risk tolerance during these short-term upheavals. Investors would likely be well served by not over-leveraging short-term moves tied to geopolitical headlines, and should instead watch macro indicators that often correlate with bitcoin.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article originally appeared on GOBankingRates.com: Trump’s Tariff Collapse Is Impacting Bitcoin — What Investors Need To Know
