The crypto market was in the red on Thursday, with most tokens falling modestly from their highest level this year. Bitcoin price dropped below the key $90,000 support level, while Ethereum, XRP, Binance Coin, and Solana fell by over 1%. The market capitalization of all tokens has dropped to $3.1 trillion.
Crypto Market News: Supreme Court to Deliver Ruling on Trump’s tariffs
The crypto market is bracing for major volatility on Friday as investors wait for key news. First, the Supreme Court will rule on Donald Trump’s tariffs on Friday. Polymarket data shows the odds are high that the court will invalidate Trump’s tariffs, a move that will push the administration to offer huge tax refunds. These tariffs are estimated to be worth about $880 billion.
The end of these tariffs will be the biggest blow to Donald Trump’s biggest policy. On the positive side, he still has more options on the table to impose tariffs. However, these options are difficult to implement because they would require the Commerce Department to conduct lengthy investigations.
The end of the tariffs will be bullish for the crypto market, as it may lead to lower inflation, which could prompt the Federal Reserve to cut interest rates further this year. Bitcoin and most altcoins do well when the Fed is cutting interest rates.
READ MORE: Why Is Crypto Down Today? Bitcoin Rejection, Profit-Taking, and Altcoin Pain Explained
Crypto Prices to React to US NFP Data
The other major crypto news to watch on Friday will be the upcoming US jobs data. A report from the Bureau of Labor Statistics (BLS) is expected to show that the economy added 55k jobs in December, fewer than the previous 65k. A report released on Wednesday by ADP showed that the economy added 45k jobs during the month.
A Polymarket poll estimates the economy created between 50k and 75k, while the unemployment rate improved to 4.5%.
A weak non-farm payrolls report will be bullish for the crypto market, as it will increase the likelihood that the bank will cut interest rates more times this year. In a statement on Thursday, Stephen Miran, a top Fed official, said he would support additional cuts of about 150 basis points this year.
READ MORE: Jasmy Coin Price Prediction: Here’s Why Japan’s Bitcoin is Rising
