Context for Chatgpt:
Robert Armstrong, the publicist of the Financial Times, initially invented the term TACO trade at the beginning of May, referring to a diagram in which Trump’s aggressive price announcements caused the market to reduce, followed by reversal, which then triggered rebounds. Today, traders expect this cycle to use it.
Wall Street Bets to Download Trump with Taco store
This strategy proved to be even more important this week, when Trump returned to generalized rates introduced on April 2, nicknamed “Liberation Day”, which focused on almost all the business partners of the United States.
The new wave of chaos confiscated the markets and pushed the President to return the jacket a few days later. Shortly afterwards, however, new prices focused on specific industries followed, and Trump publicly put pressure on the President of the Federal Reserve (Fed), Jerome Powell to reduce interest rates before re -support.
According to Armstrong, the recent rally is largely due to the fact that markets are now aware that the US administration does not have a great tolerance for economic and market pressure. This means that he could return quickly when the customs tariffs sow Discord.
Megan Casella de CNBC also questioned Trump on this topic; The President harassed and qualified these comments as “bad”.
“Do you say that you release it?” This is called negotiations, ”said Newsweek, quoting Trump.
While the President prevented his approach, market participants have finally seen a clear scheme and bet on it. The strategy has also expanded beyond the action.
The sign of the growing impact of macroeconomic recites on assets of assets truly correlation between bitcoins and the S&P 500 has reached the highest level.
Bitcoin follows the S&P 500; Effect of TACO store?
This convergence leads traders to wonder if TACO also infiltrates crypto markets.
“Bitcoin has been synchronized with the S&P 500 … Whenever correlation decreases, skeptics claim that Bitcoin has separated. However, correlations are returning again and again, often indicating the beginning of greater movement,” said Volodymyr analyst on X.
In parallel, Cryptorank.io notes that Bitcoin exceeded gold and the S&P 500 in April, despite the volatility of the beginning of the month.
“The correlation between the BTC and the S&P 500 remains strong. The S&P 500 slightly exceeded bitcoins, suggesting that BTC closely monitors the dynamics of the index … but with a higher alpha,” read the post.
While Trump finally delayed another series of customs prices stored in the EU until July 9th, markets are preparing for a new series of threats, conversion and potential rebounds.
Finally, the Taco trade, which embodies the idea that Trump’s threats make more noise than his actions than his actions seem to control the behavior of investors in traditional and digital markets today.
Morality of History: American presidents come and leave, but Taco continues.
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