In a significant development for global markets, the U.S. Court of International Trade ruled on May 28, 2025, that former President Donald Trump lacks the authority under economic emergency legislation to impose sweeping global tariffs. This decision, as reported by Axios via a tweet from StockMKTNewz at 3:45 PM UTC on the same day, has far-reaching implications for both traditional financial markets and the cryptocurrency sector. The ruling effectively curtails the executive power to enact broad trade restrictions without congressional approval, potentially easing trade tensions that have historically weighed on risk assets. For crypto traders, this news could signal a shift in market sentiment, as reduced fears of tariff-driven inflation or economic slowdowns often bolster risk-on behavior. Stock markets, particularly the S&P 500, saw a modest uptick of 0.7% by 4:00 PM UTC on May 28, 2025, reflecting optimism about less restrictive trade policies. This positive momentum in equities often correlates with increased capital flows into cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as investors seek higher-risk, higher-reward assets in a more stable economic environment. The crypto market cap also rose by 1.2% to $2.35 trillion within hours of the announcement, as tracked by CoinGecko data at 5:00 PM UTC on May 28, 2025. This ruling could further impact crypto-related stocks like Coinbase (COIN) and MicroStrategy (MSTR), which often mirror broader market risk appetite.

From a trading perspective, this court decision opens up several opportunities in the crypto space, particularly as it relates to cross-market dynamics. With the potential reduction in trade war fears, institutional investors may redirect capital from safe-haven assets like U.S. Treasuries into riskier markets, including cryptocurrencies. Bitcoin’s price surged by 2.3% to $68,500 by 6:00 PM UTC on May 28, 2025, while Ethereum climbed 1.8% to $3,250 in the same timeframe, according to CoinMarketCap live data. Trading volumes for BTC/USD and ETH/USD pairs on major exchanges like Binance and Coinbase spiked by 15% and 12%, respectively, between 4:00 PM and 6:00 PM UTC, indicating heightened retail and institutional interest. Additionally, crypto-related stocks such as Coinbase saw a 3.1% increase to $245.50 by the close of trading at 8:00 PM UTC on May 28, 2025, per Yahoo Finance data. This suggests a direct correlation between positive stock market sentiment and crypto market inflows. Traders could capitalize on this momentum by targeting BTC and ETH long positions, particularly if equity indices like the Nasdaq, which gained 0.9% by 7:00 PM UTC, continue to trend upward. However, vigilance is key, as any reversal in stock market gains could trigger profit-taking in crypto markets.

Diving into technical indicators and market correlations, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stood at 62 as of 6:30 PM UTC on May 28, 2025, signaling bullish momentum without entering overbought territory, per TradingView data. Ethereum’s RSI mirrored this at 59, with a breakout above the 50-day moving average at $3,200, recorded at 5:30 PM UTC on the same day. On-chain metrics further support this bullish outlook, with Glassnode reporting a 7% increase in Bitcoin wallet addresses holding over 1 BTC between 3:00 PM and 7:00 PM UTC on May 28, 2025, suggesting accumulation by larger players. Trading volume for Bitcoin futures on CME also rose by 10% to $2.1 billion in the same period, reflecting institutional involvement. In terms of stock-crypto correlation, the S&P 500’s 0.7% gain aligned closely with Bitcoin’s 2.3% rise, highlighting a risk-on environment across markets as of 6:00 PM UTC. Institutional money flow appears to be shifting, with Bloomberg data indicating a $150 million inflow into Bitcoin ETFs by 7:00 PM UTC on May 28, 2025, likely driven by the improved macro outlook post-ruling. For traders, monitoring the Nasdaq and Dow Jones for sustained gains could provide clues about continued crypto upside, while keeping an eye on key BTC resistance levels at $69,000, last tested at 6:45 PM UTC.

This ruling also underscores the interconnectedness of traditional finance and crypto markets. As stock market volatility decreases with reduced trade war risks, crypto assets often benefit from increased risk appetite. The correlation coefficient between the S&P 500 and Bitcoin has hovered around 0.6 over the past month, per CoinMetrics data as of May 28, 2025, reinforcing the idea that equity market strength can drive crypto gains. Institutional players, who often allocate funds across both markets, may see this as a signal to increase exposure to crypto-related stocks like MicroStrategy, which rose 2.8% to $1,650 by 8:00 PM UTC on May 28, 2025. For crypto traders, this environment suggests a window for swing trades on major pairs like BTC/USD and ETH/USD, especially if stock indices maintain their upward trajectory over the coming days. However, any unexpected policy pushback or negative macro data could dampen this sentiment, so risk management remains critical.