Traders are increasingly pivoting to quick, short-term profit-taking strategies, in response to US President Donald Trump’s trade tariffs, rather than letting their positions run, according to Arrash Yasavolian, CEO and founder of the Bittensor-based Taoshi AI-enhanced trading platform.
In an interview with Cointelegraph, the CEO said the tariffs have createdheadline-driven volatilityacross financial markets that can shift sentiment, oftenoscillating between extremesin a single day. This has made markets far more difficult to trade. Yasavolian added:
“That is the kind of behavior we have witnessed and we have shifted to this strategy internally as well,” the CEO told Cointelegraph.
Although the initial volatility has subsided and markets have somewhat recovered from theinitial Trump tariff shock, a cloud of uncertainty still hangs over all risk-on markets as traders and investors grapple with the shifting macroeconomic landscape.
Related:Bitcoin $120K ‘epic mic drop’ rally set after US court blocks Trump tariffs
Trade tariffs shake investor confidence and maximize economic uncertainty
Crypto investors are watching negotiations between the US and China for any sign of a lasting trade deal, which analysts predict will cause asustained price rally in altcoins and BitcoinBTC$104,790BitcoinChange (24h)0.13%Market Cap$2.08TVolume (24h)$22.87BView More.
On May 25, President Trump announced a delay in tariffs on European Union (EU) goods, extending the tariff deadline to July 9. Crypto markets reacted positively to the news, with theprice of BTC climbingby over 3% in an intraday move.
“The EU and US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively,” president of the EU Commission Ursula von der Leyen wrote in a May 25 Xpost.
Despite the political reassurances of productive trade talks and a potential resolution to the tensions, some analysts say that any progress in negotiations, tariff exemptions, or softening of the rhetoric is illusory, with much of itpresented for political optics.
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