Will Tariff and Fed Rulings Make or Break Bitcoin’s Bull Run?
Bitcoin’s rally to $122K collides with the Supreme Court’s review of Trump’s tariff powers and control over the Fed.
Bitcoin price has surged past $122,000, testing the upper Bollinger Band and breaking through a multi-week resistance. But this rally is colliding with a major macroeconomic wild card: the U.S. Supreme Court’s upcoming hearings on Trump’s tariff powers and control over the Federal Reserve. These cases could reshape monetary policy, trade flows, and investor sentiment. The question is whether BTC price benefits as a hedge against policy risk, or whether uncertainty drags it back into the $115K range.
Bitcoin Price Prediction: How Do Tariff Rulings Affect BTC Price?
The Court will decide whether Trump’s sweeping import tariffs, imposed under the International Emergency Economic Powers Act, are legal. If invalidated, global markets may breathe a sigh of relief—strengthening the dollar, which often puts downward pressure on Bitcoin. But if Trump secures tariff authority, we could see renewed trade wars. Higher tariffs weaken confidence in fiat systems, potentially sending more capital into hard assets like Bitcoin.
On the chart, Bitcoin price has already priced in volatility: the breakout above $120K coincides with expectations of economic disruption. If tariffs stand, Bitcoin price could ride global trade uncertainty to test the $127K–$130K zone.
Could Fed Control Trigger a Bitcoin Price Boom?
The bigger risk is Trump’s bid to fire Fed Governor Cook. If the Court rules in his favor, presidential influence over the Fed would spike. That means artificially low interest rates could return, sparking inflation fears. Historically, Bitcoin thrives in inflationary environments as a hedge against currency debasement.
The chart supports this scenario: Bitcoin price has broken above its 20-day moving average and is hugging the upper Bollinger Band. Momentum indicators hint that traders are positioning for inflation risk, which could fuel a run toward $130K in the coming weeks.
What If the Court Blocks Trump?
If the Court curtails Trump’s powers—on tariffs and the Fed—the narrative flips. Stability in monetary policy and reduced trade war risk strengthen the U.S. dollar. In that case, $BTC could see profit-taking. On the technical side, support sits around $118K–$115K. A close back below the mid-Bollinger Band would confirm a reversal, with downside pressure toward $110K.
Key Technical Levels to Watch
- Resistance: $125K, $127K, $130K
- Support: $118K, $115K, $110K
Bollinger Bands: Bitcoin is testing the upper band, signaling overbought conditions but also strong breakout potential.
Bitcoin Price Prediction: Inflation Hedge vs. Stability Trade
Bitcoin’s next major move hinges on how the Supreme Court tilts U.S. economic policy. If Trump wins expanded powers, expect Bitcoin to accelerate toward $130K as inflation hedging dominates. If the Court reins him in, a retrace to $115K is likely as stability returns and the dollar strengthens.
Conclusion
Bitcoin price sits at a crossroads between legal rulings and technical momentum. The Supreme Court may not just shape America’s economic future—it could decide whether $Bitcoin current rally extends into new highs or fades into another consolidation phase. For traders, the message is clear: watch the Court calendar as closely as the candlesticks.
Prasanna Peshkar
Prasanna Peshkar is a seasoned writer and analyst specializing in cryptocurrency and blockchain technology. With a focus on delivering insightful commentary and analysis, Prasanna serves as a writer and analyst at CryptoTicker, assisting readers in navigating the complexities of the cryptocurrency market.
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