Markets Daily Crypto Roundup: Beyond the 'TACO' Trade – Has Bitcoin Moved on From Tariffs?

Released on May 29, 2025 | Hosted by CoinDesk

In the latest episode of Markets Daily Crypto Roundup, CoinDesk delves deep into the current dynamics of the cryptocurrency markets, exploring key developments, market catalysts, and strategic investment insights. Hosted by Jen Senasi and Andy Baer, the episode features an insightful discussion with Fernando Martinez, CEO of Nonco, offering expert perspectives on Bitcoin’s trajectory, Ethereum’s ecosystem, the stablecoin surge, and the evolving crypto landscape in Mexico.

1. Bitcoin Market Update

Fernando Martinez kicks off the conversation by highlighting Bitcoin's recent bullish performance:

[00:51] Fernando Martinez: “Obviously BTC has been very strong lately. Right now it's trading at about 10,700. We have seen it uptick up until 11,100.”

Bitcoin approaching its previous all-time high underscores renewed investor confidence. Andy Baer acknowledges this momentum, setting the stage for discussions on other significant market movers.

2. Key Market Catalysts

Martinez identifies pivotal assets fueling the current crypto market enthusiasm:

a. Hyper Liquid Hype

Hyper Liquid is garnering attention as liquid funds increasingly invest or monitor this cryptocurrency, signaling potential mainstream adoption.

b. Avalanche’s Strategic Announcements

Avalanche has made noteworthy strides in the past ten days:

[01:36] Fernando Martinez: “Avalanche has announced in the last 10 days two very exciting news. First, the FIFA L1 launch. That's massive. And just yesterday night they announced a treasury deal where they're going to be putting bonds. Let me tell you exactly what it is... tokenizing a $240 billion property deeds that's going to be running on Avalanche.”

The introduction of the FIFA Layer 1 (L1) network and a significant treasury deal involving Bergen County, New Jersey, signal Avalanche’s robust expansion and integration into real-world financial systems.

Jen Senasi expresses excitement, particularly about the New Jersey initiative:

[01:44] Jen Senasi: “As someone who lived in New Jersey, I was very excited about that news.”

c. Ethereum’s Resurgence

Ethereum appears to be regaining its momentum post-PETRA upgrade:

[01:56] Fernando Martinez: “It seems that ETH is finally waking up. Ever since the PETRA upgrade there has been a very positive price action.”

Further bolstering Ethereum's position, Joe Lubin announced a substantial treasury deal:

[02:15] Fernando Martinez: “Which announced a $425 million private equity deal to launch Ethereum-based corporate deals.”

These developments position Ethereum as a resilient and evolving blockchain, countering narratives of its decline amidst rising competition.

3. Ethereum Ecosystem and Competition

Jen Senasi probes the sustainability of Ethereum's resurgence:

[02:30] Jen Senasi: “Is it something that's sustainable? Based on your comments, it sounds like your answer is going to be yes there.”

Martinez remains optimistic yet cautious:

[02:56] Fernando Martinez: “We are obviously bullish on Ethereum. It is amongst the safest chains out there. But one thing that has been repeated over and over to us by several funds, it's that it's too big of a market cap for the amount of competitors.”

He emphasizes Ethereum’s need to continuously innovate to maintain its dominance:

[03:12] Fernando Martinez: “So I think ultimately they still need to keep their game face on and make sure that they are competing against the other chains as appropriately as possible.”

A critical analysis highlights Ethereum’s recent $1,000 price surge in May and the underlying factors contributing to its price action, including the closure of Ethereum shorts:

[04:10] Fernando Martinez: “I think that a lot of the funds were actually shorting ETH and longing BTC. They closed the majority of those shorts, as you said, in a timely fashion.”

4. Stablecoin Developments and Impact on Layer Ones

The discussion shifts to the burgeoning stablecoin sector and its implications for blockchain infrastructure:

[05:42] Fernando Martinez: “I think the dollar stable coins are taking a big bite at the swift activity.”

Despite stablecoins not always prioritizing the lowest transaction costs, their dominance remains strong, particularly with platforms like Tron and Circle:

[05:50] Fernando Martinez: “The majority of the demand being in tether, specifically in Tron, and in Circle, specifically in ERC. That makes no sense.”

He points out the efforts of other chains like Solana, Base, and Avalanche striving to capture a share of the stablecoin-driven transaction flow:

[06:45] Fernando Martinez: “The other chains right now are putting all of their efforts and resources, like Solana, like Base, like Avalanche, to make sure that they're able to capture this flow.”

5. Market Narrative: Tariffs and the 'TACO' Trade

The episode delves into the macroeconomic factors influencing crypto markets, particularly the impact of US tariffs:

[07:37] Fernando Martinez: “I think the market started to kind of like anticipate that. And the volatility or the surprise effect around that, it's not taking a lot of effect right now.”

Martinez introduces the concept of the 'TACO' trade, a strategy betting on the cessation of tariff implementations by former President Trump:

[08:00] Fernando Martinez: “I saw yesterday that there's a trade called Taco. Trump always chickens out.”

This sentiment reflects a diminished market reaction as traders become accustomed to similar geopolitical events, leading to reduced volatility.

Regarding the upcoming options expiration:

[08:40] Fernando Martinez: “I think it's going to be a nothing burger. I would expect bitcoin to continue trading between 10,700 and 11,100.”

He anticipates stable trading ranges with potential for breakout only if significant momentum builds, cautioning against overestimating short-term catalysts.

6. Crypto Developments in Mexico

Transitioning to regional insights, the conversation explores Mexico’s vibrant crypto ecosystem:

[10:33] Fernando Martinez: “From a market and investment perspective, it will always be driven by North America, sometimes Asia. It's never going to be the south of the hemisphere. South of the hemisphere will always be more driven towards the real use cases or the benefits that crypto can bring. And that's going to be stablecoins.”

Martinez highlights the critical role of stablecoins in facilitating efficient cross-border transactions:

[11:00] Fernando Martinez: “It will be driven by how you can move money around faster, better, cheaper, and that is specifically around stablecoins with regards to Mexico.”

He notes that approximately 8% of Mexico to US remittances are now powered by stablecoins, a figure set to grow as trade finance demands increase due to nearshoring activities.

7. Nonco's Business Strategy and Edge

Exploring the operational strategies behind Nonco’s success, Martinez emphasizes the importance of focusing on stablecoin trends and meeting counterparty needs:

[12:51] Fernando Martinez: “I think that's exactly what gives us an edge. Right. It's not necessarily the settlement, but it's been a little bit more pragmatic as to what gives you the best return for your money.”

He reveals Nonco’s impressive financial health, boasting 40% month-on-month margins, attributing this to their service-oriented approach and technological scalability:

[13:05] Fernando Martinez: “We do about 40% month on month margins. So that's super healthy. If you compare that to against any other trading firm, it is an outlier.”

Martinez underscores the necessity of balancing automation with human oversight to manage risk and make discretionary decisions effectively.

8. Investment Strategies in Crypto and Stablecoins

Concluding the discussion, Martinez offers strategic investment advice tailored to the evolving crypto landscape:

[15:02] Fernando Martinez: “On crypto as an asset class, I think it's going to be Bitcoin and an index. Right. City 20 is a clear leader.”

He advises cautious optimism towards stablecoin investments, suggesting a focus on "picks and shovel" companies—those providing essential infrastructure and services supporting stablecoin ecosystems:

[15:38] Fernando Martinez: “If I were to invest in stablecoin, I would take a look at the picks and shovel companies that are out there right now.”

Highlighting recent successful funding rounds, Martinez points to the potential in private stablecoin ventures:

[16:08] Fernando Martinez: “We just saw Felix Powell, I think it raised $75 million on a Series A. We just saw conduit, raised $36 million on a Series A five months ago, was the bridge acquisition.”

This approach aligns with a broader industry trend where venture capitalists are keenly investing in foundational stablecoin technologies, anticipating a stablecoin-driven revolution in money movement.

Conclusion

Fernando Martinez’s insights provide a comprehensive overview of the current state and future prospects of the cryptocurrency market. From Bitcoin’s稳健增长 and Ethereum’s strategic maneuvers to the pivotal role of stablecoins in regional economies like Mexico, the episode encapsulates the multifaceted nature of the crypto ecosystem. Martinez’s emphasis on strategic investment in infrastructure and service-oriented business models underscores the sustainable pathways for growth and profitability in the rapidly evolving digital asset landscape.

Listeners are left with a nuanced understanding of how macroeconomic factors, technological advancements, and strategic investments interplay to shape the future of cryptocurrency markets.