Retail investors bought the dip on April 3, the first full trading day after Trump’s ‘Liberation Day’, not out of panic but based on conviction that the sell-off was an overreaction to macro news, specifically new US tariffs that caused a sharp market drop.
Many saw it as a buying opportunity in quality names like Nvidia, Amazon, and Nike, which had strong fundamentals but were dragged down in the broad risk-off move, according to Lale Akoner, Market Analyst at eToro. Nike, for example, plunged due to tariff concerns on imports from Southeast Asia, but long-term bulls likely saw its brand strength and market dominance as worth holding through short-term supply chain pressures.
In crypto, SOL, BTC, and XRP saw strong Q1 lows on eToro as investors globally anticipated increased adoption, regulatory clarity (especially for XRP post-SEC developments), and viewed them as hedges against dollar weakness and geopolitical risks, especially with inflation and tariffs in the headlines.
In short, retail investors bought in because they believed the assets were fundamentally strong, the drop was temporary, and opportunity often lies in chaos.
How did retail investors trade on 3 April, the first full trading day after Trump’s ‘Liberation Day’ tariff announcement?
- Buy the dip mentality: Data shows that more long positions were opened than closed on 3 April, suggesting retail investors viewed tariff-related price dips as an opportunity rather than a cause to panic-sell.
- Open positions surged: Globally, the number of long positions opened was 51% higher than the average number opened per day in March.
- Buying the Nike dip: Nike emerged as a buy-the-dip favourite as its share price tumbled 14% due to hefty tariffs on Asian nations where the sportswear brand produces most of its footwear.
Are investors buying the dip?
Retail investors on eToro bought the dip on US AI stocks whose share price have taken a hit following tariff announcements in Q1. Comparing Q1 2025 and Q4 2024,
- Nvidia saw a 21% rise in holders globally.
- TSMC saw a 17% rise in holders globally.
Many also bought the dip on major cryptoassets which have plunged in the past quarter:
- Solana saw a 17% rise in holders globally.
- Bitcoin and XRP both saw a 5% rise in holders globally.
