Analysis: Traders are leaning more towards day trading, avoiding long-term positions.

BlockBeats News: On June 2, Cointelegraph reported that in response to Trump's trade tariff policy, traders are increasingly leaning towards quick, short-term profit strategies rather than holding positions for the long term. Arrash Yasavolian, CEO and founder of Bittensor's AI-enhanced trading platform Taoshi, said the tariffs have triggered news-driven shocks in financial markets, leading to potentially extreme volatility in market sentiment over the course of a day, making trading more difficult. "Trading behaviour has basically shifted to more day trading, where when you have a profit, take it as soon as possible. So the trading behavior has basically eroded confidence in further upside or downside, whether you are long or short, and we have shifted to this strategy internally." Although the VIX, the S&P 500's volatility gauge, has returned to normal levels, investors remain uncertain about the long-term outlook, and traders and investors are grappling with the changing macroeconomic environment. Crypto investors are keeping a close eye on the U.S. tariff talks for any signs of a lasting trade deal that could be reached, with analysts predicting that reaching a deal would drive altcoins and bitcoin to the upside. Crypto markets reacted positively to Trump's announcement on May 25 that he would postpone tariffs on EU goods, extending the deadline to July 9, with the price of Bitcoin rising more than 3% in intraday trading. While politically assured of productive trade talks and a potential resolution of tensions, some analysts say any progress in the talks, tariff exclusions or softening rhetoric is superficial and largely a gesture by the Trump administration for the sake of political image.