In a market increasingly driven by headlines and rapid sentiment shifts, traders are adopting faster-paced strategies to navigate volatility sparked by ongoing trade tensions.
That’s according to Arrash Yasavolian, founder and CEO of Taoshi — a decentralized trading platform powered by Bittensor and enhanced with AI.
Speaking to Cointelegraph, Yasavolian noted that recent trade policy decisions, particularly U.S. tariffs introduced under President Donald Trump, have reshaped the behavior of both institutional and retail traders. Rather than holding positions for the long term, many are locking in profits early, adjusting their strategies for a market environment dominated by uncertainty.
“Market participants are reacting to each development almost in real-time. The tendency now is to trade intraday and exit quickly once profits appear — there’s less confidence in prolonged directional moves,” Yasavolian explained.
Although broader volatility metrics like the VIX have returned to typical levels, Yasavolian emphasized that this doesn’t reflect underlying trader sentiment, which remains cautious and reactive. The environment, he added, has made it more difficult to hold onto trades, especially in risk-sensitive sectors like crypto.
Macro Tensions Fuel Micro Strategies
Tariffs have not only triggered momentary market disruptions but also contributed to longer-term unpredictability. Despite a slight rebound from the initial shock caused by tariff announcements, investors remain wary, interpreting any macroeconomic signal — whether from Washington or Beijing — as a cue to act.
The latest development came on May 25, when President Trump announced a postponement of tariffs on European Union goods, now delayed until July 9. The crypto market responded quickly, with Bitcoin (BTC) climbing over 3% in a single day. While the move was welcomed by traders, many are skeptical that it marks a true resolution.
European Commission President Ursula von der Leyen responded optimistically on X, calling for swift and decisive negotiations, but analysts suggest that much of the messaging remains focused on optics rather than policy breakthroughs.
A Wait-and-See Market
For now, many traders — especially those in the digital assets space — are watching closely for updates in U.S.-China and U.S.-EU trade negotiations. While a breakthrough deal could catalyze a new rally in Bitcoin and altcoins, Yasavolian believes the prevailing mood remains one of caution.
“Until there’s greater clarity, we’ve noticed a structural shift in how traders operate,” he said. “Short-term thinking isn’t just a reaction, it’s the new baseline.”
