CRYPTO MECHANIC
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Trump signed executive order for Bitcoin strategic reserves and the market dumped.
you might be wondering why it dumped while the news is so bullish.
Here is why.
Buy the Rumor, Sell the News:
Traders often buy assets in anticipation of positive news (buy the rumor) and sell once the news is confirmed (sell the news). You all know trump was promising to do it in his election campaign and the topic was heating even more up since last week.
Market Expectations:
This move was already priced in when trump made a post last week and even before that like i said he is talking about it since his election campaigns.
If the market had already priced in the news, the actual announcement might not meet the heightened expectations, leading to a sell-off.
Besides price volatility America backing Bitcoin is really a positive news for BTC holders and Crypto.
you might be wondering why it dumped while the news is so bullish.
Here is why.
Buy the Rumor, Sell the News:
Traders often buy assets in anticipation of positive news (buy the rumor) and sell once the news is confirmed (sell the news). You all know trump was promising to do it in his election campaign and the topic was heating even more up since last week.
Market Expectations:
This move was already priced in when trump made a post last week and even before that like i said he is talking about it since his election campaigns.
If the market had already priced in the news, the actual announcement might not meet the heightened expectations, leading to a sell-off.
Besides price volatility America backing Bitcoin is really a positive news for BTC holders and Crypto.
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