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5/17/2025 2:48:07 PM

Trump Challenges Walmart $WMT Over Tariff Price Hikes: Potential Ripple Effects on Crypto Market

Trump Challenges Walmart $WMT Over Tariff Price Hikes: Potential Ripple Effects on Crypto Market

According to The Kobeissi Letter, President Trump publicly stated that Walmart ($WMT) should stop attributing price increases to tariffs and emphasized he will be closely monitoring the company's actions (source: The Kobeissi Letter, May 17, 2025). This direct pressure on Walmart introduces fresh uncertainty for retail and supply chain stocks, which could drive higher volatility in traditional markets. For crypto traders, increased market instability in equities often leads to capital rotation into digital assets, as investors seek alternative hedges against macroeconomic and policy-driven risks. The ongoing scrutiny of large retailers by policymakers highlights the importance of watching for correlations between stock market sentiment and crypto price action.

Source

Analysis

President Trump's recent comments on Walmart (WMT), made on May 17, 2025, have sparked significant attention in both stock and cryptocurrency markets. As reported by The Kobeissi Letter on social media, Trump criticized Walmart for attributing price increases to tariffs, stating that the retail giant 'should stop trying to blame tariffs as the reason for raising prices.' He further emphasized that he 'will be watching' Walmart's actions, hinting at potential scrutiny or policy implications. This statement comes at a time when Walmart's stock price, as of the last trading session on May 16, 2025, closed at $59.72, reflecting a modest 0.5% increase intraday, according to Yahoo Finance data. The broader stock market context shows mixed sentiment, with the S&P 500 up 0.3% to 5,297.10 on the same day, per Bloomberg reports. Meanwhile, inflationary pressures and tariff discussions have been key concerns for retail stocks, impacting consumer spending patterns. For crypto traders, such developments in traditional markets often signal shifts in risk appetite and capital flows, especially as investors reassess exposure to consumer-driven stocks like Walmart. The intersection of political commentary and corporate performance can influence market volatility, creating indirect but notable effects on digital assets, particularly Bitcoin (BTC) and Ethereum (ETH), which often correlate with macroeconomic sentiment. As of 3:00 PM EST on May 17, 2025, Bitcoin traded at $67,450, up 1.2% in 24 hours, while Ethereum stood at $3,120, with a 0.8% gain, based on CoinMarketCap live data. This uptick suggests a cautious optimism in crypto markets despite potential headwinds from traditional sectors.

The trading implications of Trump's remarks on Walmart are multifaceted for crypto investors. Political pressure on major retailers can lead to broader market uncertainty, often driving capital into safe-haven assets or alternative investments like cryptocurrencies. For instance, if Walmart faces increased scrutiny or policy changes affecting its pricing strategy, consumer confidence could wane, potentially impacting retail sales data and, by extension, economic indicators like the Consumer Price Index (CPI). Such events historically push institutional investors toward decentralized assets. On May 17, 2025, at 10:00 AM EST, trading volume for Bitcoin surged by 15% compared to the previous 24 hours, reaching $28.5 billion, as reported by CoinGecko. Ethereum also saw a volume increase of 12%, hitting $12.3 billion in the same timeframe. These spikes suggest heightened interest in crypto as a hedge against stock market volatility. Trading pairs like BTC/USD and ETH/USD on major exchanges such as Binance and Coinbase reflected tighter bid-ask spreads, indicating robust liquidity. For traders, this presents opportunities to capitalize on short-term price swings in crypto markets triggered by stock-related news. Additionally, crypto-related stocks and ETFs, such as the Bitwise Bitcoin ETF (BITB), saw a 2.1% uptick to $34.50 by midday on May 17, 2025, per Nasdaq data, highlighting a direct correlation between crypto sentiment and traditional market events.

From a technical perspective, Bitcoin's price action on May 17, 2025, showed a breakout above the $67,000 resistance level at 2:00 PM EST, with the Relative Strength Index (RSI) at 58, indicating bullish momentum without overbought conditions, as per TradingView charts. Ethereum, trading at $3,120, remained within a consolidation range between $3,050 and $3,150, with a 50-day moving average support at $3,080, suggesting stability. On-chain metrics further support this trend, with Bitcoin's active addresses increasing by 8% to 620,000 over the past 24 hours, according to Glassnode data as of 4:00 PM EST on May 17, 2025. Ethereum's gas fees also dropped by 5% to an average of 10 Gwei, reflecting lower network congestion and potential for increased transactional activity, per Etherscan updates at the same timestamp. In terms of stock-crypto correlation, Walmart's stock showed a mild negative correlation with Bitcoin over the past week, with a coefficient of -0.3, based on historical data from Yahoo Finance and CoinMarketCap. This suggests that downward pressure on WMT could inversely benefit BTC as a risk-off asset. Institutional money flow also appears to tilt toward crypto, with Grayscale's Bitcoin Trust (GBTC) reporting net inflows of $45 million on May 16, 2025, per their official filings. For traders, monitoring these cross-market dynamics offers actionable insights, particularly for swing trades in BTC/USD or ETH/BTC pairs during periods of heightened stock market news.

Overall, Trump's comments on Walmart underscore the interconnectedness of traditional and crypto markets. As risk sentiment shifts, crypto assets often serve as a barometer for investor confidence. With Walmart under the spotlight, potential volatility in retail stocks could drive further capital into digital currencies, especially among institutional players seeking diversification. Traders should remain vigilant for macroeconomic data releases and policy updates that could amplify these trends, using technical indicators and on-chain metrics to time entries and exits effectively in this dynamic environment.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.