$175 Billion Refund in Jeopardy? Trump’s Surprise Tariffs Douse Bitcoin Rebound Hopes

▲ Trump, Bitcoin / ChatGPT-generated image

After the U.S. Supreme Court ruled universal tariffs unconstitutional, President Donald Trump immediately countered with a 10% additional global tariff, throwing the direction of the Bitcoin market into uncertainty.

According to a February 21 (local time) video released by cryptocurrency-focused YouTube channel Altcoin Daily, the U.S. Supreme Court ruled that most of President Trump’s tariff policies based on the International Emergency Economic Powers Act (IEEPA) were unlawful. The judiciary’s decision opened the possibility that more than $175 billion in tariffs already collected may need to be refunded, and Bitcoin (BTC) and silver prices temporarily rebounded on expectations of liquidity injections.

Immediately following the ruling, President Trump signed an executive order invoking Section 122 of the Trade Expansion Act to impose an immediate 10% additional tariff on all imports worldwide, launching a strong counterattack against the judiciary. Treasury Secretary Scott Bessent indicated that the president has various alternative legal authorities to maintain tariffs and suggested that tariff revenues for 2026 will remain on track. President Trump also signaled that the issue of tariff refunds could lead to years of legal disputes, effectively blocking the likelihood of large-scale liquidity flowing into the market in the short term.

Financial markets reacted nervously to the heightened uncertainty stemming from the Trump administration’s hardline response. The rise in U.S. 10-year Treasury yields suggests that investors are beginning to seriously recognize long-term risks to the U.S. economy. Virtual asset analysts assessed that as global tariff barriers increase, worldwide liquidity supply will contract, placing short-term downward pressure on Bitcoin or leading to a prolonged period of sideways movement.

From a long-term perspective, policy instability and turmoil in the global financial system could mark a key turning point for Bitcoin to emerge as an alternative asset. Fund flow analyst Michael Howell described the current price correction as a long-term buying opportunity, advising investors to pay attention when Bitcoin remains below the trendline at $80,000. Howell argued that liquidity expansion is ultimately inevitable to address astronomical national debt levels and that Bitcoin is bound to trend upward over the long term.

Amid the fierce confrontation between President Trump and the judiciary, the Bitcoin market is exposed to conflicting factors of short-term liquidity tightening and long-term value appreciation. Although 2026 could prove challenging for Bitcoin due to global liquidity pressures, its status as digital gold is expected to strengthen further in the process of debt monetization. Global investors are closely monitoring additional trade policies from the White House and the trajectory of U.S. Treasury yields as they weigh their response strategies.

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