In a landmark decision that has sent shockwaves through global financial markets, the U.S. Supreme Court ruled 6-3 today that President Trump’s sweeping global tariff regime was illegal, sparking an immediate Bitcoin price rally. The digital asset surged nearly 2% within minutes of the announcement, reclaiming the pivotal $68,000 level as investors cheered the reduction in global trade policy uncertainty. The ruling, delivered on February 20, 2026, marks a significant defeat for the administration's economic agenda and has reshaped the risk appetite for crypto assets heading into the weekend.

Supreme Court Tariff Ruling: A Historic 6-3 Rebuke

The Supreme Court’s decision in Learning Resources Inc. v. Trump represents a rare cross-ideological rebuke of executive power. Chief Justice John Roberts authored the majority opinion, joined unexpectedly by Justices Gorsuch and Barrett alongside the court's three liberal justices. The court held that the International Emergency Economic Powers Act (IEEPA)—a 1977 law cited by the President to justify the levies—does not grant the executive branch the authority to impose broad tariffs on U.S. imports.

"The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope," Chief Justice Roberts wrote. "In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it." This decisive language has effectively nullified billions of dollars in trade duties, signaling a return to legislative oversight for trade policy. For the crypto market, this legal clarity was the green light bulls had been waiting for.

Bitcoin Price Analysis Feb 2026: The Relief Rally

The crypto market reaction was swift and decisive. Bitcoin (BTC), which had been consolidating near $66,500 amid growing anxiety over a potential trade war, spiked vertically as the news broke. The Bitcoin price rally pushed the asset through key resistance levels, tapping a daily high of $68,225 before settling near $67,800.

Analysts point to two primary drivers for this move. First, the removal of punitive tariffs is expected to ease the pressure on global supply chains, fostering a risk-on environment where liquidity can flow more freely into alternative assets. Second, the potential invalidation of these tariffs suggests a weaker U.S. dollar in the medium term. As the dollar index (DXY) slipped following the ruling, dollar-denominated assets like Bitcoin naturally appreciated, validating the thesis of global trade impact on crypto markets.

Short Squeeze Fuels Momentum

Data from derivatives markets indicates that the rally was amplified by a short squeeze. Traders who had bet on the court upholding the tariffs—anticipating a risk-off crash—were forced to cover their positions rapidly. This cascade of buying pressure helped sustain the move above the psychological $68,000 barrier, turning previous resistance into a potential support zone for the coming days.

Bitcoin Inflation Hedge Narrative Reignited

Beyond the immediate price action, the ruling has revived the Bitcoin inflation hedge narrative. With the administration now potentially liable to refund over $160 billion in illegally collected tariffs, fiscal hawks are warning of a widening federal deficit. Market strategists suggest that this sudden fiscal hole could force the Treasury to increase debt issuance, further debasing the currency.

"The court's decision is a double-edged sword for the economy but a clear win for scarce assets," noted a senior crypto analyst in a note to investors today. "While trade tensions ease, the fiscal reality of refunding these tariffs could lead to looser monetary conditions down the road. In that environment, Bitcoin shines as a hedge against sovereign debt expansion." This perspective is driving renewed institutional interest, as asset managers look for protection against the potential inflationary aftershocks of the judgment.

What’s Next? Global Trade Fears Ease but Risks Remain

While global trade fears ease for the moment, the political fallout continues. President Trump has already signaled his intent to explore other statutory avenues, such as the Trade Expansion Act of 1962, to reinstate some form of protectionist measures. However, legal experts warn that such moves would face similar scrutiny and significant delays.

For crypto investors, the immediate takeaway is one of cautious optimism. The Trump tariffs illegal ruling removes a massive overhang that has suppressed market sentiment for months. As the dust settles, the focus will shift to the administration's response and the Federal Reserve's next move. If the rebound in risk assets holds through the weekend, the BTC price analysis Feb 2026 outlook could shift from consolidation to a renewed bull trend, targeting the $70,000 milestone next.