Amid geopolitical tensions and market instability, more and more investors are rethinking their approach to long-term asset storage. The HODL strategy no longer seems reliable, especially noticeable against the backdrop of escalating tariff disputes between the US and the EU.
There is little time left until July 9, the deadline for key trade negotiations. And now many face a difficult choice: to remain calm and wait or to switch to active play in conditions of high volatility?
The situation in the markets speaks for itself. Volatility indices are raising alarms, and algorithmic strategies with AI are becoming increasingly popular. Pressure on the HODL strategy is growing, and for many, it is no longer a symbol of patience, but a risk that not everyone is ready to accept.
Trade tensions between the EU and the US
The escalation of tariff conflicts between the EU and the US has once again raised the threat of a global trade war. Investors, who previously calmly held assets, are now massively shifting to more flexible short-term strategies. The reason is simple — too much volatility and too little stability.
From Euro Stoxx 50 futures to the S&P 500 volatility index (VIX), the charts clearly show that there is chaos in the market right now. What was once considered reliable is increasingly perceived as a lottery.
Short-term trading is coming to the forefront
"In today's conditions, endurance is not important, but speed. No one wants to stay in a position overnight. Daily gains can be wiped out in a couple of minutes," says Arash Yasavolyan, CEO of the Taoshi platform.
When tariffs are introduced and canceled almost in real-time, market sentiment changes instantly. Instead of long positions, traders opt for quick entries and exits. Taoshi and similar platforms are changing the rules of the game — their algorithms track news and instantly adjust trading strategies.
Trade tariffs between the EU and the US destabilize the market
The main problem is the escalation of the trade war between the US and Europe. European Commission President Ursula von der Leyen described the conversation with Trump as 'productive', but specifics should not be expected before July 9.
This has already sent even the most patient holders into 'better to wait it out' mode. Indices like the S&P 500 and Euro Stoxx 50 are stormy, the EUR/USD exchange rate is volatile, and industrial metal prices are falling. Investors are increasingly choosing not patience, but to exit risk.
Euro Stoxx 50 futures: decline amid instability
Since the beginning of April, the Euro Stoxx 50 index has fallen from 5500 to 4500 points. The sharp decline began amid heightened discussions about tariffs. The market remains vulnerable to the political agenda.
Currently, strong resistance is forming around 5400. The RSI index is in the neutral zone (around 54).
S&P 500 Volatility Index (VIX)
In April, the VIX broke the level of 60 — this was a clear signal of rising panic, literally just days before the Euro Stoxx collapse. By May, the index corrected to 18.57, but this is still above comfortable levels for those adhering to a long-term strategy.
The RSI is holding at 42. Each new spike in VIX coincided with statements from politicians or delays in negotiations.
Algorithms are already in the game
While holders remain on the sidelines, the market is being picked up by AI platforms like Taoshi. They do not wait for clear signals — they simply react to the flow of news, monitor sentiment, and quickly adapt.
Taoshi is dynamically changing entry and exit points based on current risk. Algorithms work faster than humans, and this is starting to change the very logic of investor behavior.
The market is holding its breath in anticipation of July 9
This date may determine the future sentiment in the market. If the US and EU reach an agreement — stability will return.
If everything is postponed again or tensions only rise, even those who continued to hold assets will start selling.