Bitcoin is on the brink of a potential rally toward $120,000 following a significant ruling by the US Court of International Trade, which blocked the majority of former President Donald Trump’s tariffs. This decision, handed down on May 28, allegedly overstepped Trump’s authority, sparking optimism in the crypto market.
A Legal Jolt to Crypto Enthusiasm
Pav Hundal, lead analyst at Swyftx, described the court’s decision as an “epic mic drop,” suggesting it would provide a powerful stimulus to Bitcoin’s momentum. “New all-time highs are imminent,” he told Cointelegraph, emphasizing the irreversible nature of the current trend. Bitcoin’s previous all-time high of $111,970, achieved on May 22, has since dipped to $107,750, according to CoinMarketCap. Despite a 3.36% decline over the past week, Hundal remains optimistic about Bitcoin’s trajectory.
The Trump administration has already filed an appeal against the court’s ruling, yet Hundal believes the market sentiment has shifted. “It blows a hole in trade talks either way,” he remarked, hinting at the potential for significant market repositioning. This sentiment echoes previous reports where Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing.
The Ripple Effect of Tariff Reversal
Trump’s tariffs, introduced in February, targeted Canada, Mexico, and China, and were blamed for Bitcoin’s dip below $100,000, a level it struggled to surpass until early May. The tariffs, which started at 10%, were part of a broader trade war strategy that disrupted economic stability. “The trade war likely delayed a meaningful greed rally — but it didn’t bury it. The trend is higher,” Hundal noted. This aligns with earlier optimism when Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible.
Adding to the intrigue, Arthur Hayes, co-founder of BitMEX, famously advised traders to “Buy everything round dos,” hinting at a potential resurgence in Bitcoin’s fortunes. Meanwhile, Bitcoin Ranchy, another crypto analyst, expressed curiosity about the potential for “green candles” in the wake of the tariffs being deemed illegal. Such sentiments reflect the prevailing optimism within the crypto community.
Inflows and Institutional Interest
As the dust settles from the court’s decision, a “wall of money” seems poised to enter the Bitcoin market. According to Hundal, corporations, spot Bitcoin ETFs, and retail investors are all contributing to this influx. The trading week ending May 23 saw US-based spot Bitcoin exchange-traded funds (ETFs) amass $2.75 billion in inflows, a testament to growing institutional interest.
Geoff Kendrick, global head of digital assets at Standard Chartered, shared in an email note that Bitcoin is anticipated to reach $120,000 in the first half of 2025, with a potential climb to $200,000 by year-end. The rise of stablecoins is cited as a contributing factor to this bullish outlook.
Looking Ahead: Opportunities and Uncertainties
As the crypto market absorbs the ramifications of the court’s ruling, questions linger about the sustainability of this upward momentum. Will the appeal by the Trump administration dampen the optimism? Or is this the beginning of a new era for Bitcoin, driven by renewed confidence and institutional investment?
Only time will tell. But for now, the stage is set for what could be a transformative period in the cryptocurrency landscape, as investors and analysts alike watch with bated breath.
Source
This article is based on: Bitcoin $120K ‘epic mic drop’ rally set after US court blocks Trump tariffs
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
