#NewsTrade Strategy #NewsTradeCrypto (trading based on news) leverages the impact of significant news on cryptocurrency prices. Here’s the explanation and tips:
What is News Trading in Crypto?
News trading is a strategy where traders open positions before or shortly after major news is released (for example: regulations, launch of new technology, token listings, interest rate decisions, etc.) because news can cause sharp price movements.
Types of News That Most Affect Crypto Prices:
Government Regulations
Example: SEC approves Bitcoin ETF, mining ban in China, legalization in certain countries.
Macroeconomic Data (especially for BTC/USDT)
CPI (US Inflation)
The Fed's interest rate decision
NFP (Non-Farm Payrolls)
This news significantly affects BTC due to its correlation with the dollar and global asset risk.
Technology Launches/Blockchain Upgrades
Example: Ethereum Merge, Bitcoin halving, layer-2 launches.
Listings on Major Exchanges (Binance, Coinbase, etc.)
Usually provides a short-term price boost.
Social Media Sentiment & Influencers (especially for meme coins like PEPE, DOGE, etc.)
Tips for Trading Based on News (News Trading):
1. Before the News is Released:
Use an economic calendar and monitor the release schedule.
Do not open large positions if high volatility is predicted.
If confident about the direction of the news (for example, Fed likely to raise interest rates), you can take speculative positions earlier with a tight stop loss.
2. After the News is Released:
Observe the market reaction in the first 1–5 minute candles.
Use the "follow the reaction" strategy if prices move strongly in the direction of the news.
Or use the "fade the move" strategy (against the direction) if the price spike is excessive and quickly fades.
Real-Time Scenario Example (e.g., BTC):
If US CPI is released higher than expectations → high inflation → The Fed may raise interest rates → BTC usually drops → Sell BTC/USDT.
Conversely, if CPI is low → expectations of monetary easing → BTC rises → Buy BTC/USDT.
