Market Behavior Shifts as Tariffs Create Trading Challenges

Trading strategies have undergone a significant transformation following recent U.S. tariff announcements, with professionals increasingly favoring short-term gains over traditional position holding. Arrash Yasavolian, founder of Taoshi's AI-driven trading platform, reveals this tactical shift emerged in response to heightened market volatility triggered by policy changes.

Intraday Trading Becomes Dominant Strategy

"Profit-taking occurs immediately rather than waiting for extended moves," Yasavolian explained during a Cointelegraph interview. This approach reflects diminished confidence in sustained market movements either upward or downward. The Taoshi team has reportedly adopted similar methods internally, adjusting to what they describe as "headline-driven swings" that can reverse direction multiple times daily.

——Market conditions now demand quicker reactions and smaller, more frequent gains——

Volatility Metrics Mask Underlying Uncertainty

While the VIX index tracking S&P 500 fluctuations has stabilized, traders remain cautious. 【Market participants】 continue monitoring U.S.-China trade negotiations, anticipating potential cryptocurrency rallies should agreements materialize. Bitcoin demonstrated this sensitivity on May 25, climbing 【3%】 following delayed EU tariff implementation.

Political Posturing Versus Economic Reality

EU Commission President Ursula von der Leyen's optimistic social media statements about trade talks contrast with analyst skepticism. Many view recent tariff exemptions as primarily theatrical gestures rather than substantive policy shifts. This discrepancy contributes to the persistent uncertainty affecting risk assets globally.

The evolving situation presents unique challenges for crypto investors balancing short-term opportunities against long-term positioning. As Yasavolian notes, the current environment rewards agility over conviction, with even seasoned professionals recalibrating their approaches daily.