FUD and politics were driving in Bitcoin in 2025

“Smart Traders” chose more Bitcoin and Altcoins last week while retail investors were already at the 100% US president’s tariff against China, according to the Onchain Santiment’s analytics platform.
“Retail emotions often dictate that the prices of Bitcoin and Altcoins are about to do the opposite,” Santiment Brian Q analyst Says In a blog post on Monday.
Crypto markets crashed Friday as US president Donald Trump announced tough tariffs against China. Brian Q said the event was one of the four dates specifically this year that pushed the crowd’s climax.
The other moments are with one In April when the first twist of the global tariffs were announced, then again in June during the interpretations of the Middle East between Iran, Israel and the US. Also led by Fud in August, as concerns appear to be the US Federal Reserve may not cut rates.
“Wise entrepreneurs do more while the crowd is in shock at each of these dates,” he said.
FUD pushed the retail, but they always returned
However, Santiment noted that in many of these cases, retail investors would quickly return once they realized that the news was that -overblown, which benefits consumers.
During the latest FUD quarrel, a “growing part of Crypto discussions centered on Trump’s trade,” and the retail showed the “highest level of negativity throughout the year,” said Brian Q.
The steep seller last Friday saw bleeding throughout the market, but investors returned after Trump returned US Tariff Plan and Secretary of Treasury Scott Bessent Said that there was a misunderstanding And tariffs are “no need to happen.”
“It became a very common pattern in 2025. The retail was avoided by fear, then jumped back after fear of entertaining subject was confirmed overblown or all for nothing”.
“Because the crypto is emotionally driven, entrepreneurs will work together to decide what news should affect their trust in the markets. And there is enough evidence to show that Trump’s tariffs have an instant impact on returns every time a new development opens,” Brian Q.
“Emotional trading tied to political news has continued to dominate the short-term market behavior, more than we have seen in the history of 17+ years of crypto.”
A survey of 1,248 crypto users by Exchange Kraken in December 2024 tells a similar story.
Found it 81% of respondents were that -motivation Through fear, uncertainty and doubt (FUD) when invested, and 63% also admit that emotional decisions negatively affect their portfolios.
The fear and greed index is sitting in fear
Bitcoin (BTC) can Showed signs of recoveryBut the Crypto Fear & Greed index, which is the gauges in general market sentiment on a scale of 0 to 100, has come back Another “fear” rating marked 38 for the second consecutive day.
Related: XRP sees the highest ‘retail fud’ because Trump’s tariffs: Is a major seller next?
On Sunday, The score drops to 24Its lowest levels since April, amid market panic and selling-off. Last week, the index had an average rating of 70, well within the “Greed” territory.
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