📰 How do news shake the crypto market? – Example of the U.S. Treasury and Bitcoin
The cryptocurrency market does not move just because of charts or whale movements or technical indicators 💹… Sometimes a single news headline can send Bitcoin 🚀 soaring or crash it down 📉.
🔔 Example: Announcement from the U.S. Department of the Treasury
Recently, U.S. Treasury Secretary Scott Pessen stated that the government would not be buying Bitcoin to expand its strategic reserves. He explained that the only way to increase U.S. Bitcoin reserves would be through assets seized from criminal investigations.
📊 What happened next?
This statement confused investors. Some expected governments to start treating Bitcoin as a strategic asset like gold 🥇. But the opposite happened, resulting in a swift emotional sell-off that led to a drop in Bitcoin's price immediately after the news.
⚡ Why does this happen?
Traders are sensitive to any decision or signal from governments.
News creates emotional reactions: either FOMO (fear of missing out) or FUD (fear, uncertainty, and doubt).
Although Bitcoin fundamentals have not changed, the perception of risk changed immediately.
💡 Lessons for traders:
Always follow the news - it is as important as the candles and charts 📉🕯️.
Don't sell in panic immediately - prices often recover after emotions settle.
Consider the drop caused by the news as a potential buying opportunity, but wisely and with strict risk management.
🔥 Professional tip:
A smart trader does not just follow the chart; they follow the global narrative. Government statements, bank movements, and even the words of whales… all can change the market in moments.
👉 Remember: Markets move according to stories before numbers. Be vigilant, distinguish between noise and real impact, and ask yourself: Is this news just a temporary wave of emotions or a long-term paradigm shift?
