Although activity in the cryptocurrency market remains low as the summer months begin, June is expected to be anything but quiet on the U.S. economic policy front, according to digital asset research firm K33.
According to a report released today by K33 Research Chairman Vetle Lunde, the 90-day tariff suspension will end on July 9, while President Donald Trump hopes to pass the "Great Bill" in the Senate by July 4. These two developments signal a chaotic period for the market at the end of June.
"We had a pleasant time without discussions about tariffs for most of May. However, Trump broke this peace by threatening the EU with a 50% tariff and then delaying the decision on tariffs until July 9," Lunde said, adding that Bitcoin had fallen from its peak following Trump's announcement and has not yet reached that level. He conveyed that this situation shows how sensitive the market is to discussions about tariffs.
Last week, Wall Street began using a new acronym for Trump: "TACO", short for Trump Always Chickens Out. This term was coined to refer to easing tensions with China after imposing tariffs and then postponing those tariff levels. But Lunde said such rhetoric and the upcoming tariff deadline could increase pressure on Trump to pursue tougher policies.
At the same time, Republicans are reportedly working overtime throughout June to pass Trump's "Great Bill" through the Senate and onto the president's desk. This legislation could add an additional $3.8 trillion to the national debt over the next decade, with most of the burden coming from corporate and individual tax cuts alongside other stimulus and spending plans.
Theo Lunde, the debate over the Senate bill and amendments could create significant volatility in the market in June. If the bill is passed, these expanded impacts could boost market sentiment and offset pressure from the reinstatement of tariffs.