It’s all screams in crypto space from the past couple of days; it feels like someone pulled the rug out under the biggest bullish story of 2025. Unfortunately, sad news kept floating crypto surface every single day. And this time the supposedly Trump’s tariffs are dropping off.
We all took Trump’s tariffs too seriously. It has that pitch as the perfect way to fund America’s Strategic Bitcoin Reserve and make the U.S. the crypto capital.
The US Supreme Court ruled 6-3 on the 20th of February that most of those tariffs were unconstitutional. Clearly, hundreds of billions in expected revenue are deemed a fraud. The easy money pipeline for fuelling Bitcoin is now to dismantle. This isn’t some minor policy tweak. It’s a massive narrative explosion that’s left the Bitcoin reserve scrambling and the whole “America First crypto” vision in limbo.
Let’s walk through what actually happened, why tariffs were such a big deal for crypto, how the market reacted and what comes next. Just the straight facts.
Why Tariffs Were Crypto’s Secret Weapon
Back in early 2025, the Trump administration launched a trade war against countries that are using US purchasing power to dump and sell their goods, regardless of category. Countries like China were paying tariffs of more than 100%.
It was thought to protect US jobs and industries while generating enormous revenue. That money would go toward the Strategic Bitcoin Reserve. This was expected to begin with 325,000+ seized BTC in March 2025 and allow the government to purchase more on the open market.
Trump stance on crypto and boost program made crypto twitter love every decision involving crypto. It was “America First” on steroids, to be honest. Let put it simple; trade wars paying for digital gold was the mainstream view. The story was ultra-bullish and coupled with trump families joining and innovating in crypto.
Government demand reduces sell pressure, signals long-term support, positions US ahead of China. Many saw it driving BTC to new highs while mainstreaming crypto.
The Supreme Court Ruling Game Over for the Original Plan
The court ruled that Trump exceeded his authority under the IEEPA. As previously stated, broad tariffs require Congress rather than executive authority. Approximately 75% of 2025 tariffs have been invalidated. Importers may be eligible for refunds ranging from $100 to $200 billion.
The hype surrounding the neutral budget for buying Bitcoin has vanished overnight. But Trump responded fast. hre unleashed a 10% increase on all tariffs. Treasury’s Scott Bessent claimed it could replace lost revenue. But lawsuits are already piling up and experts say another Supreme Court fight is coming.
It may take the whole year!
Market Reaction Is Surprisingly Chill
You’d expect a meltdown, but crypto barely moved. Here are what happened so far:
- Bitcoin surged ~2%, briefly exceeding $68K, due to reduced trade-war fears and potential USD weakness.
- The market capitalization remained stable or slightly increased to around $2.38-2.4 trillion.
- There was no panic selling, no fear spike. The same as the 10/10 side effect, but without any ongoing FUD.
However, as uncertainty lingers and the new tariffs face legal challenges, the refund could widen deficits and bring back the printing matching. So, end of the day, bullish for crypto.
What’s Next for Bitcoin Reserv & Market Outlook
Bitcoin is not dead; it is simply losing interest in its primary fuel source since Trump’s inauguration. Expectedly, Congress could push for new tariff laws that benefit both the United States and traders.
In other words, we may see budget reallocation and incentive pushes from Trump, who promised to allocate up to $2,000 USD to each citizen. Polymarket offers a ~40% chance of full refunds. If this is the case, it will be the most significant fiscal hole.
In theory, US lawmakers do not want to make more money by implementing a tariff regime to address the nation’s massive debt.
Final Thoughts
This ruling isn’t the death of Trump’s crypto vision, it’s a forced evolution and World Liberty project is still running. The Strategic Bitcoin Reserve could still thrive on legislation or innovation; not tariff shortcuts. As asserted by CZ, Bitcoin never needed someone to bail it out. The market barely flinched because BTC’s story is bigger than one policy. If trade tensions ease and liquidity flows, new highs are still possible.
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FAQ:
Q1: What exactly did the Supreme Court decide?
6-3 that Trump exceeded his authority under IEEPA—wide-ranging tariffs require congressional approval. Approximately 75% of 2025 tariffs have been invalidated.
Q2: What amount of revenue was anticipated from tariffs for the Bitcoin reserve?
Hundreds of billions of dollars per year, most of which are now gone. Refunds could amount to $100-200 billion.
Q3: What action did Trump take immediately following the ruling?
The new 10% “global tariff” under Section 122 has been increased to 15% (max allowed). The Treasury claims that it replaces revenue; lawsuits have already been filed.
Q4: How did the cryptocurrency markets react?
Bitcoin briefly increased by about 2% due to reduced trade-war concerns, while the market capitalization remained stable. There is no panic sell-off.
Q5: Is the Strategic Bitcoin Reserve now defunct?
No, new funding is required (Congress, seizures, and revaluation). Tariffs were once the easy path; now it is more difficult.
Q6: Is the short-term outlook for Bitcoin bullish or bearish?
Mixed: positive (lower inflation), but legal battles add chop and uncertainty.
Q7: What is the long-term impact on US crypto dominance?
Forces that take a more sustainable path (legislation vs. executive action) may be strengthened if bipartisan.
Q8: What does Polymarket say about refunds?
There is a 40% chance of full refunds, which would create a significant fiscal hole.
Q9: How does this affect the Bitcoin price?
Reduced trade war fears result in increased liquidity. Long fights are volatile.
Q10: What should traders watch next?
Fed actions, legal updates, and budget news. If you believe in Bitcoin eventually, scale in on dips and remain hedged against chop.
