The cryptocurrency market is gearing up for a potentially turbulent week as investors anticipate the U.S. Supreme Court’s upcoming decision on tariffs, scheduled for February 20.
This ruling could have far-reaching effects beyond just tariffs, influencing equities, commodities, foreign exchange markets, and increasingly digital assets like cryptocurrencies.
Impact of the U.S. Supreme Court Tariff Ruling on Risk Assets
Historically, tariff-related rulings tend to sway overall macroeconomic sentiment rather than directly impacting crypto markets. During previous trade disputes, financial markets often reacted with increased risk aversion: the U.S. dollar strengthened while stocks faced downward pressure.
Cryptocurrencies typically respond in two phases during such events: an initial liquidity-driven sell-off alongside other risky assets followed by a divergence when investors seek alternative stores of value.
For example, Bitcoin has previously declined in sync with equities but later stabilized as the dollar’s strength diminished. The key factor here is often the performance of the U.S. Dollar Index (DXY).
A stronger dollar tends to reduce global liquidity and dampen appetite for speculative investments like cryptocurrencies; conversely, a weakening dollar usually supports higher risk-taking behavior.
Given that markets are already fragile after volatile movements earlier this month, this February 20 decision might serve more as a catalyst amplifying existing trends rather than initiating new ones independently.
Technical Outlook for Crypto Markets
The total capitalization of cryptocurrencies currently hovers around $2.32 trillion following a sharp decline from early February lows near $2.1 trillion. The daily Relative Strength Index (RSI) sits in the mid-30s range—recovering from oversold levels—indicating that selling pressure may be easing though momentum remains subdued.
Importantly, this total market cap remains below both its 50-day simple moving average (around $2.82 trillion) and its 200-day SMA (approximately $3.37 trillion), signaling that overall market structure is still corrective in nature. Unless prices break above these averages—especially the 50-day SMA—any rallies may encounter resistance near $2.6 to $2.8 trillion levels.
The U.S Dollar Index currently trades near 96.9 points and lies beneath both its short-term and long-term moving averages which are trending downward—a sign pointing toward continued weakness in the greenback.
If DXY continues declining after the Supreme Court verdict is announced, it could create favorable conditions for cryptocurrencies to attempt a rebound or relief rally.
The Role of Bitcoin and Ethereum
The performance of major coins such as Bitcoin ($BTC) and Ethereum ($ETH) will be crucial indicators going forward.
Bitcoin maintains dominance over other digital currencies by market share
and has demonstrated greater resilience relative to many altcoins.
At press time, $BTC touched approximately $68&comma459&comma down nearly three percent within twenty-four hours.
Ethereum stabilizes around $2000, yet it remains more vulnerable to shifts in broader risk sentiment.
If Bitcoin can hold critical support zones while Ethereum regains upward momentum, if so, if so then internal strength across crypto assets might be improving.
Potential Scenarios Ahead Of Feb&period20 Decision:
- A brief surge into risk-off mode causing temporary crypto price declines ;
- A relief rally fueled by ongoing weakness within US dollars ;;;
- An extended period marked by choppy trading activity awaiting clearer direction post-decision .
Total capitalization close enough at support combined with declining DXY suggests heightened volatility rather than calmness ahead .
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