As mentioned in previous posts, I decided to short some altcoins like LTC and HYPE based on RSI signals on the DEX Drift (check it out here). And guess what? It worked.
Why?
First, because RSI usually works. Overbought conditions on these altcoins signaled a likely pullback, and I executed the trades accordingly. But the real kicker? Trump’s new tariffs.
The Trump Effect on Crypto Markets
On Feb 1, Trump imposed new tariffs: 25% on imports from Canada and Mexico, and 10% on China. Canada’s Trudeau retaliated. Markets hate uncertainty, and that includes crypto. Bitcoin dipped below $100K, dragging altcoins down with it.
Trading the News
This is why I shorted. Crypto is still correlated to macro events, and Trump’s economic moves add fuel to volatility. When uncertainty rises, traders sell off riskier assets—including altcoins.
How to Trade on Drift
If you want to take advantage of macro events like this, here’s how to start trading on Drift:
1️⃣ Buy USDC and SOL on Binance
- You need SOL for gas fees and USDC as collateral.
- Withdraw them to the Solana network.
2️⃣ Create a Solana Wallet
- Use Phantom or Backpack (Chrome extension or mobile app).
- Fund your wallet with the SOL and USDC you withdrew from Binance.
3️⃣ Connect to Drift
- Go to Drift and connect your Phantom or Backpack wallet.
- Deposit USDC as margin.
4️⃣ Open a Short Position
- Choose the altcoin you want to short (e.g., LTC or HYPE).
- Adjust leverage (keep it reasonable).
- Click SHORT and confirm the trade.
The Takeaway
If you’re trading crypto, don’t just look at charts—watch geopolitical events. Whether you love or hate Trump, his decisions move markets. And if you position yourself right, you can profit off the chaos.
Want to trade events like this? Check out Drift (link). Stay sharp.
Disclaimer: Not financial advice. DYOR.
