CITIC Securities has released an analysis detailing how contrasting statements from former U.S. President Donald Trump and ex-Treasury Secretary Steven Mnuchin generate significant Bitcoin market volatility through a pattern termed the ‘TACO transaction’.
The report highlights that market turbulence typically intensifies following Trump’s ambiguous or disruptive remarks, only to stabilize after subsequent calming interventions by Mnuchin. This dynamic frames Trump as the market ‘bad cop’ while positioning Mnuchin as the stabilizing counterpart in their policy theater.
Key stabilizing measures by Mnuchin included advocating to remove Section 899 from the Omnibus Budget Bill Amendment legislation, expressing optimism about a U.S.-Japan tariff resolution, and persuading Trump against dismissing Federal Reserve Chair Jerome Powell. These actions effectively mitigated investor anxiety and restored market confidence after volatility episodes.
The ‘TACO transaction’ framework illustrates how institutional responses to political rhetoric remain a critical factor in cryptocurrency price movements, with coordinated messaging between key U.S. figures continuing to shape trader psychology in digital asset markets.