Traders Shift to Short-Term Tactics: The Tariff Tango!

In a universe not so far away, traders have decided that long-term strategies are about as useful as a chocolate teapot. Instead, they are pivoting to quick, short-term profit-taking tactics, all thanks to the delightful chaos unleashed by US President Donald Trump’s trade tariffs. According to the ever-astute Arrash Yasavolian, CEO and founder of the Bittensor-based Taoshi AI-enhanced trading platform, it’s all about seizing the moment—like a cat pouncing on a laser dot.

In a riveting interview with CryptoMoon (which sounds suspiciously like a place where one might find a three-headed alien), Yasavolian noted that these tariffs have created a delightful cocktail of headline-driven volatility that can swing sentiment faster than a hyperactive squirrel on espresso. This has made trading feel like trying to juggle flaming torches while riding a unicycle on a tightrope.

“Trading behavior has essentially changed to be more intraday — when you have your profit, you just take it when you can get it. So, behavior is essentially cutting confidence on further upside or downside if you are taking a position on longing or shorting.”

“That is the kind of behavior we have witnessed and we have shifted to this strategy internally as well,” the CEO told CryptoMoon, probably while sipping a cup of tea and contemplating the meaning of life.

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Although the initial volatility has subsided (like a bad hangover), and markets have somewhat recovered from the initial Trump tariff shock, a cloud of uncertainty still looms over all risk-on markets. Traders and investors are grappling with the shifting macroeconomic landscape, which is about as stable as a house of cards in a wind tunnel.

Trade Tariffs: Shaking Investor Confidence and Maximizing Economic Uncertainty

Crypto investors are now watching the negotiations between the US and China with the intensity of a hawk eyeing its next meal, hoping for any sign of a lasting trade deal. Analysts predict that such a deal could cause a sustained price rally in altcoins and Bitcoin (BTC), which is about as likely as finding a unicorn in your backyard.

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 the price of BTC climbing by over 3% in an intraday move, which is a bit like finding a fiver in your old coat pocket.

“The EU and US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively,” proclaimed Ursula von der Leyen, president of the EU Commission, in a May 25 X post, probably while trying to keep a straight face.

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 as real as a mirage in the desert—beautiful to behold but ultimately unattainable.

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2025-06-02 00:33