Bitcoin Sell-Off: Trump's Tariff Comments Spooked Short-Term Traders

crypthub

about 6 hours ago

Political Rhetoric Triggers Short‑Term Selling

Recent Bitcoin volatility was sparked by former President Trump’s tariff comments, which unsettled short‑term investors. Analysts at XWIN Research Japan show the remarks acted as a catalyst, not a fundamental flaw in Bitcoin. The market’s reaction was swift, with price dips coinciding with heightened political uncertainty.

On‑Chain Metrics Reveal Panic Selling

The Short‑Term Holder Realized Profit/Loss Ratio (SOPR) fell below 1.0 after each tariff announcement, indicating holders selling at a loss. This pattern repeated after the Supreme Court blocked a tariff and a new 15% tariff was proposed. Long‑term wallets (over 155 days) showed no comparable selling surge.

Implications for Investors

The sell‑off reflects a structural vulnerability of short‑term traders to macro‑risk shocks, not a rejection of Bitcoin’s value. Monitoring SOPR helps distinguish fear‑driven capitulation from healthy corrections. Investors can use this insight to avoid overreacting to similar political or regulatory headlines.