Web3 CEO: Traders shift to short term strategies to cope with tariffs

Day traders are increasingly shifting to quick take profit and short term strategies in response to the trade tax levels imposed by President Donald Trump, instead of maintaining long term positions. This is the observation of Mr. Arrash Yasavolian, CEO and founder of the Taoshi trading platform, built on Bittensor and integrated with AI technology.

In an interview, Yasavolian stated that these tax levels have caused significant volatility in the financial market, primarily stemming from headline information, which has led to rapid changes in investor sentiment and frequent fluctuations between extremes within the same day. He noted that this has made trading more difficult than ever. Yasavolian further shared:

"The trading behavior has changed significantly, focusing more on day trading. When profits are achieved, traders often take profit immediately instead of waiting longer. This reflects a decrease in confidence in the ability to increase or decrease further when holding long or short positions."

"This is a trend that we have observed and have also applied a similar strategy internally," he said.

! Traders turn to short-term tactics in response to tariffsAlthough the VIX, the index that tracks volatility in the S&P 500 stock market index, has returned to normal levels, investors remain uncertain about the long-term outlook | Source: TradingViewAlthough the initial volatility has eased and the market has somewhat recovered from the shock from Trump's tariff policy, an atmosphere of uncertainty still envelops risk markets. Traders and investors are currently facing a volatile and unpredictable macroeconomic landscape.

Trade Tax: Severe Impact on Confidence and Creating Economic Uncertainty

Cryptocurrency investors are closely monitoring the negotiation process between the U.S. and China in search of any signs of a long-term trade agreement. According to analysts' predictions, such an agreement could trigger a sustained price increase for both altcoins and Bitcoin.

On May 25, President Trump announced an extension of the tariff deadline on goods from the European Union (EU) to July 9. This information has had a positive effect on the cryptocurrency market, with the price of Bitcoin rising over 3% in a single day of trading.

"The EU and the US have one of the closest and most important trade relationships in the world. Europe is ready to push for negotiations quickly and decisively," European Commission President Ursula von der Leyen wrote in a post on X on May 25.

However, despite the optimistic political statements about the negotiation process and the potential to resolve tensions, some analysts argue that these developments are merely symbolic. They believe that moves such as tax exemptions or easing tensions are only superficial, designed to serve political purposes rather than deliver substantive results.

Mr. Giáo