U.S. Market Reacts to Trump’s Tariff Dispute Amid Crypto Optimism

On May 28 (U.S. time), Wall Street closed in the red across all major indices, with the Dow Jones, S&P 500, and Nasdaq each down by over 0.5%. Futures rebounded modestly, while crude oil prices edged higher to $62.44 per barrel and gold settled near $3,264/oz despite minor pullbacks.

Investor sentiment was rattled after a three-judge panel from the U.S. Court of International Trade unanimously ruled that former President Donald Trump overstepped his authority by implementing sweeping tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). The court deemed the move unconstitutional, arguing it violated the U.S. Constitution, which grants Congress—not the President—the power to levy taxes.

While the Trump administration is expected to appeal, the ruling injects legal uncertainty into the enforcement of Trump’s trade policies. In response, the White House pushed back, stating, “It’s not the role of unelected judges to determine how to respond to national emergencies.”

These developments come as Trump continues to campaign on a tariff-heavy economic strategy, relying on $255 billion in annual tariff revenues introduced during his presidency.

Bitcoin Corrects Slightly as Spot ETF Inflows Stay Positive

Bitcoin traded around $108,000–$109,000 after a brief correction from recent highs. Market capitalization remains strong at $3.548 trillion, with select altcoins like ETH and BNB seeing mild gains, while others experienced slight pullbacks.

U.S. spot Bitcoin ETFs recorded another day of positive inflows, totaling $432.7 million. Ethereum ETFs followed with $84.9 million in net gains, showing growing institutional confidence despite short-term volatility in prices.

Fed Minutes Reveal Uncertainty on Rate Policy Amid Inflation and Trade Risks

The latest minutes from the May 6–7 Federal Reserve meeting revealed caution among policymakers. Officials expressed concern that new trade tariffs could amplify inflationary pressures, complicating future interest rate decisions.

In light of fiscal and trade uncertainty, the Fed opted to maintain current interest rates. Officials emphasized a "wait and see" approach, indicating that further data would be needed before considering cuts. Chairman Jerome Powell echoed this sentiment in recent speeches, underlining that the Fed is not ready to act prematurely.

Rising U.S. Treasury yields reinforce this view, suggesting markets are pricing in a prolonged high-interest rate environment. Historically, surging yields have hindered financial market recoveries—something Trump faced in 2019 when he was forced to pause tariff retaliation due to bond market stress.

Bitcoin Institutionalization: From ETFs to Reserve Accumulation

Michael Saylor, executive chairman of MicroStrategy, addressed concerns about Wall Street dominance over Bitcoin at the Bitcoin 2025 Conference in Las Vegas. He argued that even if institutions held 10% of Bitcoin’s supply, the remaining 90% would still benefit global holders. According to Saylor, attempts to "control" Bitcoin only serve to redistribute wealth, further validating its decentralized nature.

This perspective was echoed throughout the event as discussions shifted toward the strategic national accumulation of Bitcoin. Senator Cynthia Lummis proposed creating a U.S. Strategic Bitcoin Reserve, similar to the country’s gold stockpile. She emphasized Bitcoin’s role in national economic security, especially after mining operations migrated from China to the U.S.

Senator Lummis also confirmed that the Senate Banking Committee had advanced a stablecoin bill, and upcoming legislative efforts would focus on market structure and reserve policies for Bitcoin. The alignment between Congress and the Trump administration signals a proactive legislative stance favoring crypto.

Trump Administration’s Bitcoin Playbook

Bo Hines, Director of the White House Digital Asset Advisory Council, labeled Bitcoin as the “gold standard” of digital assets. He unveiled the creation of a Strategic Bitcoin Reserve (SBR), a non-selling fund dedicated to accumulating BTC for national benefit. According to Hines, the U.S. government is committed to neutral budget acquisition, ensuring that reserves are built without public debt expansion.

David Sacks, a senior White House crypto advisor, stated that Bitcoin’s value lies not just in price action but also in its innovation potential. He condemned the Biden administration’s hostile regulatory environment, claiming it forced American innovation abroad. Sacks emphasized that America must lead in blockchain technology or risk ceding dominance to nations like China and the UAE.

Global and Institutional Bitcoin Momentum Builds

Several major developments at the Bitcoin 2025 Conference further fueled optimism:

• Donald Trump Jr. projected that Bitcoin could reach unprecedented highs within the next 2–5 years, citing increasing adoption and innovation.
• Elon Musk voiced frustration over Trump’s proposed $3.8 trillion spending bill, highlighting inefficiencies despite cost-saving efforts by his DOGE-backed efficiency agency.
• Pakistan announced it would establish its own national Bitcoin reserve, inspired by the U.S. model.
• Gamestop acquired 4,710 BTC following a successful bond issuance, joining a wave of public companies embracing crypto reserves.
• MetaPlanet issued $50 million in 0% bonds to purchase additional BTC.
• BlackRock is reportedly buying a 10% stake in Circle, the issuer of USDC stablecoin, ahead of its IPO.
• SharpLink Gaming raised $425 million to purchase Ethereum as part of its corporate treasury strategy.
• TON Foundation appointed ex-Visa exec Nikola Plecas to oversee global crypto payment integration.
• Telegram is set to sell $1.5 billion in 5-year bonds with a 9% yield, offering future equity discounts for early investors.
• IMF approved a $120 million loan disbursement to El Salvador but warned against further Bitcoin purchases. The country continues its “1 BTC a day” strategy, now holding 6,190 BTC.

Bitcoin Gains Strategic Spotlight

The Bitcoin 2025 Conference marked a clear shift in how governments, financial institutions, and tech leaders view BTC—not as a fringe speculation but as a strategic asset for national security, innovation, and wealth preservation. With ETF flows rising, favorable legal momentum, and bipartisan interest in Bitcoin’s integration into U.S. economic policy, the foundation is being laid for a structurally bullish cycle.

While legal challenges to Trump’s tariff authority may take time to resolve, the broader market is paying closer attention to how U.S. fiscal and monetary policy intersects with crypto innovation. As Bitcoin moves from Wall Street portfolios to strategic reserves, the asset’s next phase of adoption may prove its most consequential yet.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.