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How Crypto and US Stocks Reacted to Trump Tariffs Ban

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How Crypto and US Stocks Reacted to Trump Tariffs Ban

US financial markets and cryptocurrencies moved higher after the Supreme Court struck down former President Donald Trump’s sweeping global tariffs, removing a major source of economic uncertainty.

The court ruled that Trump exceeded his authority by using emergency powers to impose broad tariffs without approval from Congress. The decision limits the president’s ability to reshape trade policy unilaterally and restores Congress as the primary authority over tariffs. 

Supreme Court Restores Congress’s Control Over Tariffs

The ruling immediately reshapes the balance of power in US economic policymaking.

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The tariffs, imposed under emergency authority, had targeted imports from multiple countries and generated billions in revenue. 

Businesses and trade groups challenged the measures, arguing they raised costs and disrupted supply chains. The Supreme Court’s decision now blocks similar tariffs unless Congress explicitly approves them.

Stocks and Crypto Rise as Trade Uncertainty Eases

Markets reacted quickly.

The S&P 500 rose about 0.40%, while the Nasdaq gained roughly 0.70%, signaling renewed investor confidence. Technology stocks led gains, reflecting improved expectations for economic growth and stability. 

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S&P 500 Surges After Supreme Court Announcement. Source: Google Finance

Meanwhile, the global crypto market cap climbed to about $2.38 trillion, with Bitcoin trading near $67,000 after recent volatility.

Gold briefly dipped following the decision before recovering, reflecting a shift in risk sentiment.

The market reaction reflects a key shift: reduced trade uncertainty. Tariffs often act like taxes on imports, raising prices and slowing economic activity. 

Gold Becomes Extremely Volatile. Source: TradingView

Removing the threat of broad tariffs lowers inflation risks and improves liquidity expectations, both of which support risk assets.

This is particularly relevant for crypto.

Crypto Markets Turn Green. Source: CoinGecko

Bitcoin and other digital assets are highly sensitive to global liquidity and investor confidence. When macroeconomic uncertainty declines, capital tends to flow back into riskier assets. 

The recovery in crypto alongside stocks suggests investors are regaining confidence after weeks of geopolitical and economic stress.

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However, the decision also highlights deeper political tensions. The ruling limits presidential authority and reinforces Congress’s constitutional control over tariffs. This could slow future trade actions but also reduce sudden policy shocks that destabilize markets.

For crypto markets, stability in global trade and economic policy is generally positive. While geopolitical risks remain, the Supreme Court’s decision removes one major macro threat.

In the near term, that shift appears to be supporting Bitcoin and the broader digital asset market.

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Crypto World

Crypto Markets Tick Up Following Supreme Court Tariff Ruling

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Crypto Markets Tick Up Following Supreme Court Tariff Ruling

Bitcoin holds near $67,700 while investors assess Trump’s new 10% global tariff plan.

Crypto markets traded slightly higher on Friday, Feb. 20, as traders reacted to the U.S. Supreme Court ruling that struck down President Donald Trump’s emergency tariffs.

Bitcoin (BTC) is trading at $67,728, up 1.2% over the past 24 hours, while Ethereum (ETH) is at $1,970, up 1.5%. Other large-cap tokens were also mostly higher, with XRP up 1.5% to $1.43, BNB rising 3.2% to $625, and Solana (SOL) gaining 4% to $85.

Meanwhile, the total cryptocurrency market capitalization is hovering near $2.4 trillion, up 1.3% on the day. Daily trading volume stood at around $114.5 billion, according to CoinGecko.

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Among top gainers, Morpho (MORPHO) climbed 11%, Ethereum Classic (ETC) rose 5.3%, and Official Trump (TRUMP) added about 5%. On the downside, Aave (AAVE) fell roughly 4.6%, Pi Network (PI) dropped about 3%, and Rain (RAIN) slipped around 2%.

Liquidations and ETF Flows

About $180 million in leveraged crypto positions were liquidated in the past 24 hours, according to CoinGlass. Long liquidations accounted for roughly $71.9 million, while shorts made up about $108 million.

Bitcoin led liquidations with $67.9 million, followed by Ethereum at around $38.3 million. More than 78,600 traders were liquidated during the period.

In the ETF space, Bitcoin spot ETFs recorded $165.76 million in outflows, while Ethereum spot ETFs experienced $130 million in outflows. In contrast, XRP spot ETFs recorded around $4 million in inflows, while Solana spot ETFs posted $5.94 million in inflows, per SoSoValue data.

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Supreme Court Strikes Down Tariffs

The market uptick came amid intensifying macroeconomic uncertainty after President Donald Trump announced plans to impose a 10% global tariff. Trump’s announcement immediately followed a Supreme Court ruling that deemed his emergency tariffs illegal.

Notably, President Trump’s new tariffs could only take effect for up to 150 days unless Congress approves an extension, CNN reported.

Investors also reacted to increased geopolitical tensions after Trump said he is considering a limited military strike on Iran if nuclear negotiations do not progress soon.

In traditional markets, safe-haven assets have continued to hold steady. Gold traded at $5,092, up 1.46%, while silver climbed 6% to $84.

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Meanwhile, Paul Howard, Senior Director, Wincent, said in comments shared with The Defiant that there has been a “mix of developments” over the past two days impacting price action independently of larger macro trends.

“These include speculation around the U.S. stablecoin bill, the launch of a SUI ETF on Nasdaq, and several DATs marking down their books,” Howard said. “Given the noticeable thinning of liquidity over the past month, volatility risk is currently elevated relative to levels observed over the past 12 months.”

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Bitcoin Whales Rebuild Reserves With 236K BTC in 90-days

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Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Market Analysis, Liquidity, Whale

Large Bitcoin (BTC) holders have steadily increased their holdings in recent months, with the total balance climbing back to levels last seen before the October 10, 2025, market crash.

At the same time, crypto exchange data shows whale-related outflows averaging 3.5% of exchange-held BTC over a 30-day rolling period, the highest since late 2024.

BTC whale reserves return to pre-October peak

Bitcoin wallets or “whales”, holding between 1,000 and 10,000 BTC, have rebuilt reserves over the past three months. The cohorts increased their total balance to 3.09 million, from 2.86 million BTC on Dec. 10, 2025, a 230,000 BTC addition that restores their balance to pre-October 2025 levels.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Market Analysis, Liquidity, Whale
Total BTC balance of large holders (1K-10K). Source: CryptoQuant

Crypto analyst ‘Caueconomy’ said the full drawdown in whale reserves has been reversed over the past 30 days with the accumulation of 98,000 BTC. The broader distribution phase began in August 2025 (after BTC hit $124,000), after which Bitcoin struggled to sustain a rally significantly higher.

BTC spot market data supports the recovery. Throughout 2026, the average BTC order size has ranged between 950 BTC and 1,100 BTC, the most consistent stretch of large-ticket activity since September 2024.

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Similar clusters appeared during the February–March 2025 correction. During that phase, retail orders accounted for the majority of activity, while large blocks appeared more intermittently and in smaller clusters.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Market Analysis, Liquidity, Whale
Bitcoin spot average order size. Source: CryptoQuant

Related: ‘Resilient’ Bitcoin holders defend BTC, but bear floor sits 20% lower: Glassnode

BTC exchange flows spike to 14-month highs

CryptoQuant analyst Maartunn reported $8.24 billion in whale BTC exchange flows moved into Binance over the past 30 days, marking a 14-month high. Retail flows reached $11.91 billion and have flattened over the same period. The retail-to-whale ratio now sits at 1.45, and it continues to drop as the larger-size deposits increase.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Market Analysis, Liquidity, Whale
Binance whale to exchange flows. Source: CryptoQuant

Parallel to these inflows, Glassnode data shows gross exchange whale withdrawals averaging 3.5% of total exchange-held BTC supply over a 30-day period, the strongest pace since November 2024.

Based on current exchange balances, that translates to roughly 60,000–100,000 BTC in withdrawals over the past month. 

While gross inflows into exchanges have also increased, the elevated withdrawal ratio suggests that much of that incoming BTC is being offset by strong outbound transfers, leaving net exchange balances relatively stable.

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Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Market Analysis, Liquidity, Whale
BTC exchange whales outflow. Source: Glassnode

Related: Quantum fears aren’t behind Bitcoin’s 46% drop, says developer