Crypto Market Sell Off On The TACO Trade, Trump Tariffs Make A U Turn

The crypto market today was on edge as traders waited for Donald Trump’s reaction to TACO (Trump Always Chickens Out) accusations and the decision by a court to halt his reciprocal tariffs. A federal court appeals court later reinstated the Trump tariffs as markets took a U turn from Green to red in a single day. 

Crypto Liquidations Rise As Trump Tariffs Take a U Turn

Bitcoin (BTC) price remained at $108,000, while Ethereum (ETH) jumped to its highest level since February, and liquidations jumped by 50% to $298.2 million per CoinGlass data. There is a risk that Trump’s response to the TACO accusations and the tariff ruling could trigger a crypto and stock market crash, putting trillions at risk.

Appeals Court Reinstates Trump tariffs, Trump’s Response to TACO

A potential catalyst that puts the crypto market at risk is TACO, a new term meaning Trump Always Chickens Out. The term means that Trump makes a big announcement and then cools down after a while. 

He pushed tariffs on Chinese goods to 145% in April, only to lower them after the first round of negotiations in Switzerland. Last week, he threatened to implement a 50% tariff on European goods starting on June 1, only to postpone them to July after talking with Ursula von der Leyen. 

Trump has rejected these claims and noted that he was ready to push up tariffs again if talks don’t lead to more gains for the US. 

The challenge, however, is that a US court ruled that Trump’s reciprocal tariffs were illegal, in a victory for Americans and other countries. The administration is expected to appeal the ruling, all the way to the Supreme Court. A likely scenario is that Trump’s tariffs will be allowed to remain in place, pending the final decision at the Supreme Court. 

Crypto prices often react to tariff news. Most of them crashed in April when he announced his Liberation Day tariffs and started rising when he announced a three-month pause. Last week, Bitcoin price retreated after he announced a 50% tariff on European goods.

Trump has responded to the TACO allegation as a Federal appeals court rejected US International trade court’s ruling and the trump tariffs are back, all within a single day.

If the Trump administration wins the tariff legal battle at the Supreme Court, he will likely follow through on most of his threats as he tries to remove the TACO tag, Such a move would likely lead to trillions of dollars in losses in the stock and crypto market. For example, his Liberation Day tariff announcement led to trillions in losses as these assets plunged.

Is Trump A Pro Crypto?

US president’s trade war is hurting crypto despite the bullish every fundamentals. Recent reports show, US investors are accumulating Bitcoin while the Gold buying spree is slowing down.

The crypto market also reacted mildly to a speech by Vice President JD Vance at a Bitcoin Conference. He made the case for Bitcoin and assured attendees that the industry was well represented in the White House. 

Eric Trump and Donald Trump Junior attended the conference and gave bold predictions. Trump Junior believes that the BTC price will end the year between $150,000 and $175,000, while his brother estimated that it will hit $170k by 2026. 

These statements came as the Trump family is getting more involved in the crypto market. This week, Trump Media said that it was raising $2.5 billion to buy Bitcoin as it seeks to replicate Strategy’s success.