Bitcoin (BTC) Price: ‘Epic Mic Drop’ Court Ruling Could Fuel Rally to $120K

Bitcoin has been on a strong upward trajectory in recent weeks, reaching a new all-time high of $111,970 on May 22 before settling around $107,750. This price movement comes amid a significant legal development that could impact the cryptocurrency’s future performance.

On May 28, the US Court of International Trade blocked the majority of President Donald Trump’s tariffs, ruling that he had overstepped his authority. This decision could have major implications for Bitcoin and broader market sentiment.

Swyftx lead analyst Pav Hundal described the court’s decision as “an epic mic drop” that will “intensify momentum behind Bitcoin.” He believes that “new all-time highs are imminent, and the momentum is largely irreversible at this stage.”

The Trump administration has filed an appeal to the court’s decision. However, Hundal suggests that regardless of the outcome, market sentiment has already shifted. “It blows a hole in trade talks either way, and that means we’re likely to witness a repositioning in the market,” he stated.

Trump’s initial tariffs on Canada, Mexico, and China, introduced in early February, were widely considered a primary factor behind Bitcoin falling below $100,000 and remaining under that psychological level until May 8.

The legal challenge to these tariffs could remove a significant headwind for Bitcoin’s price growth. According to Hundal, “a wall of money” is flowing into Bitcoin through corporations, spot Bitcoin ETFs, and retail investors.

Buy everything round dos. pic.twitter.com/VDPxGFYczX

— Arthur Hayes (@CryptoHayes) May 29, 2025

Market Metrics Point to Continued Growth

The technical indicators for Bitcoin also suggest potential for further price increases. Burak Kesmeci, a contributor on CryptoQuant’s QuickTake platform, has highlighted the importance of the Market Value to Realized Value (MVRV) ratio in his recent analysis.

The MVRV ratio, which compares Bitcoin’s market value to its realized value, currently stands at 2.36. This is above the 365-day Simple Moving Average (SMA365) level of 2.14, typically signaling sustained upward momentum.

However, Kesmeci points to a crucial resistance level at 2.93, where previous rallies have faced challenges. How Bitcoin’s MVRV behaves at this resistance could determine whether the upward trajectory continues or if a period of stabilization or correction might occur.

Despite Bitcoin’s recent price achievements, retail investor participation remains relatively subdued. Kesmeci notes that transfer volumes in smaller denominations (under $10,000) have seen minimal increases, suggesting the current rally is primarily driven by institutional or large-scale investors.

This pattern differs from past major rallies, such as the one in 2020-2021, which gained significant momentum when retail investors actively participated. An uptick in retail investment could potentially catalyze further Bitcoin appreciation.

Bitcoin Price on CoinGecko

The trading week ending May 23 saw US-based spot Bitcoin exchange-traded funds (ETFs) record total inflows of $2.75 billion, indicating strong institutional interest in the cryptocurrency.

Standard Chartered’s global head of digital assets, Geoff Kendrick, recently predicted that Bitcoin will reach $120,000 in the first half of 2025, potentially climbing to $200,000 by year-end. This forecast aligns with Hundal’s outlook for Bitcoin’s price trajectory.

As Bitcoin continues to navigate market conditions and regulatory developments, its performance in the coming weeks will be closely watched by investors and analysts alike.