Crypto markets dipped Wednesday as traders weighed macroeconomic pressures, a fresh round of tariff tensions, and legal drama involving former President Donald Trump. Bitcoin slipped 1.4% to $107,326 while Ethereum hovered around $2,730.

The broader pullback coincided with a federal court decision blocking Trump’s April 2 tariff hike — a move the former president's team said it would appeal.

The blocked tariffs were part of Trump’s renewed push to reshape U.S. trade policy heading into the 2024 election. But the ruling threatens to delay or unwind parts of that agenda. Analysts say renewed uncertainty on trade could spill into markets that have become increasingly sensitive to geopolitical and policy shifts.

Trump, meanwhile, brushed off the setback and launched into a fiery exchange when asked about Wall Street’s “TACO trade” — shorthand for “Trump Always Chickens Out” — which describes a pattern of sharp tariff announcements followed by quick reversals.

“Don’t ever say what you said. To me, that’s the nastiest question,” Trump snapped at a reporter.

When pressed, he defended his track record, "I reduced China down to a 100, then down to another number, and because I gave the European Union 50 percent tax… You call that chickening out? It's called negotiation.”

He added, “Now, when I make a deal with them — it’s something much more reasonable — they’ll say, ‘Oh, he was chicken.’ That’s unbelievable.”

The administration’s appeal is expected to face further legal scrutiny. Until then, markets are likely to remain on edge — and crypto won’t be spared from the volatility.

Watch: Trump rages at 'chickens out' trade question first appeared on TheStreet on May 29, 2025