Heightened macroeconomic uncertainty—driven by U.S. trade tariffs under Donald Trump’s administration—is forcing traders to adopt short-term profit-taking strategies, according to Arrash Yasavolian, CEO of the AI-driven Taoshi trading platform, built on the Bittensor blockchain.
In a recent interview with Cointelegraph, Yasavolian explained that headline-driven volatility has become the new normal, particularly across crypto and risk-on markets. As a result, many traders are no longer holding positions long-term but are instead opting to lock in gains intraday.
“When you have your profit, you just take it. Trading behavior has essentially become intraday,” Yasavolian said. “We’ve adopted this strategy internally too.”
Headline Volatility Driving Rapid Position Flips
The renewed implementation and threats of trade tariffs—especially between the U.S., China, and the European Union—have led to rapid shifts in market sentiment, often oscillating within a single trading day. This makes predictive models and long-term investment strategies more difficult to execute reliably.
Although the VIX volatility index—which tracks investor fear in the S&P 500—has returned to typical levels, traders are still reacting cautiously, wary of potential new tariffs or political decisions that could disrupt markets again.
Crypto Reacts to Tariff News and Geopolitical Signals
Cryptocurrency markets, especially Bitcoin (BTC), remain sensitive to global trade news. On May 25, President Trump delayed tariffs on European Union goods until July 9, sparking a 3% intraday rally in BTC. This indicates the crypto market’s close correlation to macroeconomic developments.
“The EU and US share the world’s most consequential and close trade relationship,” said EU Commission President Ursula von der Leyen on X, expressing optimism about further negotiations.
Despite diplomatic gestures, analysts caution that many positive signals may be superficial, serving political optics rather than representing meaningful economic change.
Long-Term Outlook Remains Cloudy
While markets have somewhat recovered from the initial tariff shock, uncertainty continues to hang over both traditional and crypto assets. Until a clear resolution is reached between the U.S. and its trade partners, traders are likely to favor short-term setups, minimizing risk in an unpredictable landscape.
Conclusion
With geopolitical events steering market direction day by day, intraday and tactical trading strategies are becoming the dominant approach. As Yasavolian emphasized, in today’s market, “taking profit when you have it” may be the only dependable tactic.