Court Ruling Limiting Trump's Tariff Powers Sparks Hope For Risk Asset Revival, Including Bitcoin

by Murtuza J Merchant Benzinga Staff Writer

Zinger Key Points

Analysts warn that the legal process is far from over, with appeals already filed and Supreme Court intervention possible.
The court’s tariff ruling may influence crypto laws by highlighting the need for clear executive limits and market rules.
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A federal court ruling striking down President Donald Trump's global tariff powers could stabilize macroeconomic volatility and rekindle investor interest in risk assets such as Bitcoin BTC/USD and altcoins, according to experts.

Market participants have hailed the recent federal court decision curbing presidential authority under the International Emergency Economic Powers Act (IEEPA) as a potential turning point in investor sentiment.

The ruling, delivered by the U.S. Court of International Trade, invalidated broad tariffs imposed by the Trump administration, raising hopes that fewer abrupt policy shifts could bring calm to turbulent markets.

Speaking with Benzinga, Marcin Kazmierczak, co-founder and COO of RedStone, noted that the decision has already generated a "temporary risk-on sentiment," with U.S. equity futures rising 1.5% immediately after the news.

He cautioned, however, that "this represents just one step in an ongoing legal process that will likely reach the Supreme Court."

Cryptocurrencies, particularly Bitcoin and major altcoins, remain closely tethered to broader risk market movements.

During April's sharp tariff announcements, Bitcoin fell below $75,000, while altcoins like XRP/USD shed over 17%, showing that they acted more like tech stocks than safe havens.

"The recent market dynamics suggest cryptocurrencies are currently behaving more as risk-on assets than traditional hedges," Kazmierczak said.

Still, the court's intervention may offer a reset in investor psychology, especially for digital assets.

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Chuck Zhang, PolyFlow’s CFO, cited the court’s decision as likely to "restore investor confidence and stabilize the economic environment," which could support renewed capital inflows into cryptocurrencies.

Zhang added that while Bitcoin may initially benefit from revived risk appetite, altcoins, particularly those with visible utility and developer traction, could emerge as hedging instruments against future geopolitical or trade disruptions.

"Capital rotation into altcoins will be a popular route for retail investors looking for higher short-term returns than BTC," Zhang told Benzinga.

The court's decision not only reins in executive overreach in trade policy but may also influence future approaches to crypto regulation.

Zhang underscored the ruling's potential to inspire "a clearer regulatory framework," a sentiment echoed by other industry observers, who have interpreted the event as a bullish catalyst.

The ruling comes amid a fraught policy landscape.

Trump's reciprocal tariff structure, announced just last month, erased $5 trillion in market value from U.S. equities in only two days.

With such fragility exposed, markets are likely to react swiftly to any legal or political developments that signal a reversal or reinforcement of that volatility.

Photo: Shutterstock