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Crypto Market May Crash Ahead of Court Tariff Ruling, Top Analyst Highlights

Michael Adeleke
1 day ago Updated 16 hours ago
Michael Adeleke

Michael Adeleke

Crypto Journalist
Expertise : Cryptocurrency, Blockchain, DeFi
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
traders watch Friday’s Court decision closely amid fears of a crypto market crash

Highlights

  • Wimar has warned of a potential crypto market crash tied to a U.S. Supreme Court ruling expected this Friday.
  • He shared that a decision taking down the tariffs could trigger serious volatity.
  • Historical precedents show that past tariff announcements led to sharp Bitcoin sell-offs.

A leading crypto analyst has warned that a potential crypto market crash is looming that may happen this upcoming Friday. This comes ahead of the U.S. Supreme Court’s decision on the Trump tariffs.

Crypto Market Crash Claims Tied to Supreme Court Tariff Ruling

Key opinion leader Wimar has warned that Friday, January 9, could be a turning point of sorts in the markets of 2026. According to him, if the Supreme Court ruling states that Trump tariffs are illegitimate, it could cause chaos in the markets.

Source: X

The prediction markets seem to confirm this concern. The data obtained from Polymarket indicates a probability of about 79% that the court would be striking down the tariffs.

Source: Polymarket

If so, Wimar states that markets will instantaneously price in not only the obligation to refund but also lost governmental revenue. According to his observation, it is in these conditions that liquidity grabs occur easily in bonds, digital assets included.

Trump repeatedly said the tariffs brought in nearly $600 billion. A loss would leave investors wondering how much money needs to be returned and how fast refunds would be issued.

He warned that such questions rarely lead to orderly price discovery, instead, traders usually reprice everything at once, which could lead to a crypto market crash.

The Supreme Court may reach a decision on the case by this Friday. It was observed that some justices seemed doubtful during the argumentations presented in November. It was argued that the President could use the authority given by the emergency powers law passed in 1977 to impose large trade tariffs.

The decision against the policy would be the biggest blow to Trump in the courthouse since his return to office. Trump has himself publicly supported the tariffs.

“I hope they do what’s good for our country. I hope they do the right thing. The President has to be able to wheel and deal with tariffs,” he said.

Why are Investors Watching the Tariff Ruling?

Early April 2025, Trump announced a 10% baseline tariff against imports from over 50 nations, which led to a crypto market crash. The value of Bitcoin reduced more than 10% within a week.

But relief came in when the White House declared a 90-day tariff pause. Not long after, the market saw a rebound in digital assets as well as equities linked with crytptocurrencies.

However, in October 2025, the rekindled tensions between the US and China resulted in yet another market crash for crypto. After the warning of a 100% tariff on Chinese imports, Bitcoin dipped by over $10,000 within an hour.

More than 19 billion in long positions were liquidated in 24 hours alone. These were the largest losses the market had ever experienced in the sector. Against these precedents, market participants are closely watching the Friday ruling.

In another post, the analyst said Trump would not take the decision lightly if not in his favor.

 

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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