“Smart traders” Santiment’s onchain analysis platform says that retail investors overreacted last week to US President Trump’s 100% tariff against China.
“Retail’s emotions often dictate that Bitcoin’s and altcoins’ prices are about to do the opposite,” Santiment analyst Brian Q said On Monday, I wrote a post for my blog.
As US President Donald Trump announced tough tariffs on China, the crypto markets collapsed. Brian Q claimed that this was just one of the four events in 2017 which caused a spike in crowd anxiety.
Included in the list are: in April when the first round FUD also dominated August, as concerns arose that the US would impose tariffs on all goods and services. FUD dominated August when there was concern that the US Federal Reserve might not cut rates.
“Smart traders scooped up more while the crowd was in panic on each of these dates,” He said.
The FUD drives retail away, but it always comes back
Santiment said that many retail investors returned to their investments once they realized it was all a hoax, thus benefiting dip buyers.
In the most recent FUD attack, “growing share of crypto discussions centered on Trump’s trade stance,” The retail industry showed off its best. “highest negativity level all year,” Brian Q says
After Trump’s reversal of the tariff plan, and US Treasury Secretary Scott Bessent said there had been a misunderstanding The tariffs “don’t have to happen.”
“This has become an all too common pattern in 2025. Retail gets shaken out by fear, then jump back in after the fear-inducing topic is confirmed to have been overblown or all for nothing”.
“Since crypto is sentiment-driven, traders collectively decide what news should impact their confidence in markets. And there is enough evidence to show that Trump’s tariffs have instant impacts on reversals whenever a new development unfolds,” Brian Q says
“Emotional trading tied to political news continues to dominate short-term market behavior, arguably more than we have ever seen in crypto’s 17+ year history.”
Kraken’s survey in December of 2024 on 1,248 users revealed a similar trend.
Find out what you can that 81% of respondents were motivated Fear, Uncertainty and Doubt (FUD) has been cited as the main reason for emotional investing decisions.
Fear and Greed Index includes fear
Bitcoin (BTC), also known as Bitcoin, is a cryptocurrency that can be used to purchase goods and services. have shown signs of recovery, but the Crypto Fear & Greed Index, which gauges overall market sentiment on a scale of 0 to 100, has returned Another way to say it is that you can also use another “fear” The second day in a row, rating with 38.
Related: XRP sees highest ‘retail FUD’ since Trump tariffs: Is a major sell-off next?
This Sunday the score dropped to 24The index has fallen to its lowest level in April due to the panic on Wall Street and the sell-off. The index’s average rating was 70 last week. This is well within the range. “Greed” territory.
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Source: cointelegraph.com
