“Smart traders” Santiment’s onchain analysis platform says that retail investors reacted negatively to President Trump’s tariff of 100% against China last week, resulting in a rise in Bitcoin and other altcoins.
“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.
Crypto markets fell on Friday after US President Donald Trump announced tariffs against China. Brian Q stated that the event is one of only four in this calendar year which has caused peak fear among crowds.
There are also other moments, such as one. in April when the first round In June, tensions between Iran, Israel, and the US in the Middle East led to the announcement of tariffs. FUD was also prevalent in August as there were concerns 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.
Retailers are pushed out by FUD, but always return.
Santiment said that many retail investors returned to their investments once they realized it was all a hoax, benefiting dip buyers.
In the most recent FUD attack, “growing share of crypto discussions centered on Trump’s trade stance,” Retail showed its effectiveness. “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 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 of crypto tells the same story.
You can find out more about it by clicking here 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 has been seated in fear
Bitcoin (BTC). 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 You can find out more about this by clicking here. “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?
The Sunday Service 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
