Topic: Why "Buy the Rumor, Sell the News" is Fading in Bitcoin Trading? (Read 757 times)

News can be real or fake, FUD but we as traders in the market, not as market makers, can not control news. What we can do is with our trading positions and trading capital. We are free to open or close our trading positions and this practice can help us defending our trading capital or destroying it.

Trading does not mean holding positions for too long, because market can suddenly move up or down dramatically that can cause either Short squeeze or Long squeeze and it's not too rarely with both Long and Short squeezes occur within few minutes.

With uncertainty on what's next, it's safest to close all current positions and do like your advice, wait for chances to open new positions. With traders, nothing is more important than protecting their trading capital and closing all current existing open positions is a good practice for capital protection.

One of best weapons in trading. Use stop loss order is good but if traders are in time of very high uncertainty, it's safer to close all positions than using a stop loss order, that can fail practically too.

I will not say that those days are gone, they will happen again in future but massive changes are not happening commonly or at present times even with political tensions between countries and elections upcoming.

Flippers are looking for such quicks gains but holders are not. So you have to decide what position you want to take - both are profitable at specified durations of holding but the frustration that comes with not being able to flip is much higher than holding.

Either way prices are staying at stagnancy hence it is better to wait it out than open a new position.

Shouldn't it be the reverse? I mean if there is a war going on, then bitcoin should be better to hold compared to cash or stablecoins? I believe if my nation was under attack, the first thing I would do, literally even before I pack my things to leave, I would just get bitcoin with everything I have, then get some cash as well, those two will allow me to run away to wherever, and do better.

Bitcoin is such a solid asset and you can just keep it going between borders without a trouble at all, whereas everything else is much worse. Having a fear of war between Iran vs Israel and selling your coins because of this reason makes no sense to me at all. Even they shouldn't be selling it, let alone people in other nations, who definitely have no reason to sell.

It all starts with how they joined this market and how they did risk and capital management. If they purely joined this market after were informed by friends, news about Bitcoin, but did not make any due diligent research, they were not prepared well to stay strongly in this market.

They could not have proper risk and capital management for either their investment or trading. Like if they started with not their own money, but loans, they will no longer have good ability to stay strong when bad news appear in this volatile market. Even they want to be strong, market liquidations will kill their positions and they will lose big capital rather than get profit as they hoped at beginning.

The reason why many people are just very worried about the price of bitcoin is because a lot of people are basically involved in trading bitcoin by buying and expecting the price to rise almost immediately but they forgot to know that bitcoin investment can be more fruitful in the future than those little profits they are interested in taking within a short interval of time. Big news influences the market positively no doubt but we should not depend so much on them. Positive news will only boost the confidence of investors a little but it can't cause a dump if it goes the other way round and many investors have come to believe that bitcoin is better as a store of value than involving in perpetual trading.
     Gone are the days when negative news leads to immense DIP and struggles to come back because right now bitcoin investors are no longer by negative news about bitcoin unlike in the past when their is any little negative news people begins to panic and sell their coins.

It was never been effective in the first place if we do speak about that "Buy the Rumor, Sell the news" on which we do know that when it comes into this aspect then this space isnt something that will really be giving out that sure effect into its price whenever there would really be news or fundamentals around. When we do speak about movements then it would really be that totally random and this is why it is really that an unpredictable space on which this is something that not all be confident on dealing with because of too much volatileness and that very random on which certain analysis doesnt really work all the time.

On the time that government and institutional funds are starting to flow into this market., then we've seen different instances or conditions on which price is really that highly reactive
on the moment that news would be coming out on which it would really be neither positive or negative. For those who do make use of TA's but doesnt apply any FA's then they would really be able to see
their trading analysis wont really be able to hit the spot because with those common factors on which this could possibly be changed up.

Don't you think it was bound to happen with time ?
Back when bitcoin used to pump or dump based on news and events it was relatively new and people used to react to those events.
But as time is passing by, people are getting smarter and volatility is decreasing as bitcoin price is increasing.
The amount of money flowing in drives the volatility and as the marketcap increases bitcoin would need even more amount of money flowing in to keep the volatility high.
If no new money flows in then the price would swing within a range.

One of the reasons for the high interest in investing in Bitcoin is that this coin is highly volatile, which means that investors can lose as well as gain from it. If there was no volatility then everyone would not have the same attitude towards it. Many people think that if Bitcoin was stable instead of volatile then it would have been profitable but that is not the case. If Bitcoin is stable for some reason, then it should be understood that the interest of the general public has decreased. People will move away from this platform if ordinary investors cannot profit. If the volatility in the market decreases, the volume of transactions will also decrease, so eventually people will lose interest in it. In general, the ups and downs in bitcoin price is an important aspect, if the price is stable then people will be discouraged to invest in bitcoins.

Actually pump and dumps are still there. Meme coins are example of it and meme coins are still popular even at this point. Crypto being approved by someone or some entity is a big thing, no wonder why we can see a positive effect in the crypto price after.

It's also possible that the effect will last long if the person or entity that approves it will keep on making innovations in their business, place, etc... with the help of the crypto.

Crypto moves in cycle, so whether we like it or not or no matter what we do in order to counter it, there will always be a time that the cryptos position are going to change from positive to negative or from negative to positive. The optimism is still there and will always be there.

In fact, in the ETF that occurred this year, a lot of people are positive about it before it happened and this positive optimism have carried on even after the approval of ETF. That is because the effect is really positive in the price.

There might be times that the effect is negative, so the optimism of the people can also change from positive to negative as well.

Institutional investors are already there even before but maybe more are coming in here. That event can actually make the price of Bitcoin to be more unstable but there is a new growth that will be experienced. BTC has never been boring even though there are times before that its value is stable.

Bitcoin dip was realised in 2022 and from May to November. And from November the price had started changing. And since then I have not seen bitcoin going back the those of pump and dump. And I don't think bitcoin would still hit $16k again. But we will see the full results from next year. And for me bitcoin is still on the good (pump) side of the market because the previous market of All Time High was $69k though I didn't see that before this year All Time High of $73k and if you make some calculations, and now that bitcoin is $61+k, it is still on the significant pump and it will become dump when the price reduced below $40k. Yes the second ETF made the price rise and the next thing which I am suspecting that will make bitcoin price to soar is the victory of Trump and if really he implements what he said.

People who went through a bear market or several bear markets will understand it better.

In bear market, even good news does not show any positive effect and bad news will always trigger massive negative effects on the market. Oppositely in a bull market, bad news will sometimes don't have negative effects and people simply skip these news and move on with their greed and purchases higher and higher. Of course sometimes bad news in bull market will trigger a correction or crash.

These examples mean that we can not control news, when it will be released, and whether it is good or bad news, but more important, we can not know what effects of a news on market, it's very unpredictable.

The world's hardest asset? It's not the hardest asset in the world, it is the most volatile asset. Bitcoin is a speculative asset so it is no surprise that when there is unusual volatility, people will rush to sell to avoid more serious losses. Also, it depends, if you are a long term bitcoin investor then selling would be a bad idea as the drop is not significant. But if you are a speculator, a trader, selling or cutting losses when there is negative news is the right thing to do .

Also, you can't expect people to stop panicking and stop selling because financial markets don't work that way. If there were no panic sellers , how could bitcoin price fall and how could we buy the DIP ?

If it means negative news which could mean negative result on bitcoin price as well, then I don’t think selling bitcoin is appropriate. Instead, you buy more while the price hits the market and create a significant drop. I think this is one of those reasons why traders never end up profiting, because they tend to sell at a wrong timing, regardless if they buy bitcoin at a low or high price.

It is only a matter of strategy how you will gain profit from this market. It may be a tedious job but it needs hard work to gain profits. Traders will understand this as they have their first-hand experience when it comes to finally executing a trade. If you have no ample time in trading, better not to force yourself. Because you will only deplete your financial assets for some activity that you are not fully prepared of.

Situations like Iran-Israel is quite hard to see, but people need to decide on what to do with their assets. At the end of the day, it is the person himself who is responsible with his assets, so need to take care of his own business rather than rant everywhere and attend someone else's affairs.

 

Why is this "news"?

The Middle East has ALWAYS been unstable, and it will be unstable FOREVER. But from that "Israel - Iran" war, I believe that we will be given another GOLDEN OPPORTUNITY to buy Bitcoins with a discount. - MORE units for the same amount of capital.

I also believe that a majority of the plebs will be fully bearish. Wait for that MOMENT, and Buy the DIP and HODL.

You need to understand the reality of the market now. Gone are the days when an anonymous whale would cause huge market drives due to rumours and mere internet words/biases, the market is now mature, we should respect that. Another thing is that those news/events you mentioned are real and are indeed good driving forces for any market since they envisage advancement and better liquidity. Nevertheless, it is hyped as usual, the reality is what we see now when the dust settles down.

Yes, we should accept the fact that institutional investors have taken over Bitcoin's market drives, so the market will behave more sane now. And for me, the market is never boring, it can only be boring to those who do not change their strategy. The key now is a smart investment based on the market condition and reality, not the old mantra/ways that are not always feasible.

It's more than true as news is used by market makers and except if you are one of market makers and are controlling the news will be used for market manipulation.

You are right too about how news is used and when it will be released to let many people know about reasons of market dumps. People always look for reasons of market dumps and after a while, they will see reasons that written in news.

News cannot be trusted when we need to find actual reasons of market movements.

So have you sold your bitcoins yet? If you sell bitcoin in time I would be surprised because usually the market reacts before we find out what caused it. If you notice, usually when bitcoin gets dumped and then people start looking for the reason, so almost no one sells in time, and few people can know the news before the market reacts, unless you are a big whale.

Also, selling at this point is actually a bad idea because bitcoin is not down that much, just 5-7% and this drop is too small for us to panic or think about optimizing.

I think on the contrary, bitcoin is unlikely to fall further and will recover from here because bitcoin's correction was only meant to liquidate liquidity and it has done its job. As for the war, I don't think it will get more serious and have a big impact on the market.

Didn't expect this drop to happen and although we see some disappointing sight this morning still I will able to hold my bitcoins. Didn't plan to sell it at the moment since I'm planning to hold it. Although it good to see that bitcoin experiencing some dumps since this will open up some opportunities to us to acquire more since there's huge chance that price would recover soon.

This is indeed a good opportunity for people to gain something from the dump. If they won't take any action and remain scared then provably that they might regret that they missed a chance to acquire bitcoin when the price fall at $60k - $61k price level. Will seek more information regarding on current dump happened to day maybe we can get an information which is helpful for our investments.

In my opinion, the Bitcoin price will indeed be more stable than before for some time. Spot Bitcoin ETF funds are a new factor in the cryptocurrency market.

First of all, the approval of Bitcoin ETF funds is a stimulation of demand for coins. It is now easier for investors to invest in Bitcoin, so the very existence of such funds will serve as support for the Bitcoin price (therefore, there will most likely be no sharp price drops in the near future).

In this regard, it should be noted that alternative cryptocurrencies (except Ethereum) do not have such support. And their price, in theory, can fall very significantly.

At the same time, ETF funds have the potential to manipulate the price of the first cryptocurrency (in a certain corridor). As a result, we will probably face a situation where the Bitcoin price will move along an unpredictable trajectory (at the same time, the volatility of this asset will decrease).

If you check the charts, you'll see that the price started to rise in January 2022 and the bull run lasted till 2024 march. Price went from 17K to 73K, isn't that a significant rise? If I amn't wrong, from 40K, ETF caused buy the rumour sell the news and we reached 73K. Btw it's expected that we go to the moon and ETF approval will boost that process but it needs time. From 17K to 73K is a good rise and the bull run has to cool down. Now the price will be stable for a while and soon the bull run will start again. December is coming, check old post-halving periods, a significant bull run starts in winter, after the halving and will last till the summer.

Just woke up this morning to hear this news and before I could sell off my investment and wait for the price to go down and buy back again, the market has already seen red all through. Bitcoin is now at $60k something that was above $63k three days ago. This is a huge opportunity for Bitcoin traders to gain huge profits from the news, and I am expecting the price to fall below $60k. No doubt it will as Iran is expecting Israel to strike soon. I saw a video were Israel spot our the largest nuclear plan in Iran and that is where they have in mind of attacking soo.

I don't know. But ask Jerome Powell, and the Cabal of Central Bankers if they will stop using their money printers to print more money out of thin air.

¯\_(ツ)_/¯

Because zoom out to the maximum - The "pump and dump" behavior are merely small price movements that are not very noticeable if we compare that to the major surges of Bitcoin, and what causes the major surges? The total M2 money supply.

Looks like people are currently selling the news (hostilities & subsequent attack Iran - Israel). I will never understand why people sell the hardest asset in the world when there is conflict that probably won’t ever affect them personally. People should be buying Bitcoin, not selling in times like this. I pray people will be OK & casualties are limited but come on, stop selling Bitcoin.

Prices have been stagnant over the 62k to 65k USD levels, so what? It will change but it will take time.

When big news come or even if they dont, still prices will fluctuate. At this point no big movement from large cap funds is happening and maybe that is the reason or maybe we are all wrong and people dont find trading that attractive as it was.

Either way it does not matter to long term hodlers. But if you are a flipper, you will feel the frustration.

How do we measure whether Bitcoin is or isn't getting less volatile? Which time period do we take as a basis? If it's the highest and lowest points over the course of 1 year, that's one picture. If we consider monthly changes, that's probably something else. Looking at Bitcoin over the last year, the lowest was below $27k, and the highest was $73k. Then another year into the past, it was below $17k and above $30k. There used to me more volatile years in the past, such as 2021 (I'm measuring from October to October), but also  periods of similar volatility level, such as between October 2019 and October 2020.
My point is that for now, I'm not sure if Bitcoin actually is getting less volatile. But over time, I believe that it can get less susceptible to news and less volatile. However, I think it's due to the increasing market capitalization and hence a difficulty of making a difference when so much money is involved, rather than due to institutional investors.

No, i don't think that we are we are heading towards a more stable bitcoin price behavior because inasmuch as there are different factors that causes upwards and downwards movement in the price of bitcoin, it will continue to experience market fluctuations but what will be there is that it will neither experience extreme dump nor a heavy pump but for now since bitcoin is gaining more popularity we should experience more pump than dump till we get to a stage when bitcoin will become a part of our daily living then it won't get much excitement since majority of people will already be familiarize with the digital asset.

 Inasmuch as people still trade bitcoin with Fiats while others are HODLING, it will continue to experience market fluctuations because as people buy bitcoin others are selling but had it been bitcoin has gained full adoption and people start using it as a means of exchange from one bitcoin HODLER to another only then will there be a stability and balance in the price of bitcoin.

I don't agree with the observation. We aren't heading toward a more stable price. Bitcoin remains volatile. As a matter of fact, just around 2 months ago, the price was $70,000. A week later, the price nosedived all the way down to $50,000. Less than 5 days thereafter, the price was above $61,000. Only to fall back to $53,000 after a month. And then just a few days ago, the price went above $66,000. But it went down to $60,000 hours ago. Right now, it's almost $62,000.

That's far from stable. Nothing has changed.

It is like double sides in the market.

The market needs to be lively so it needs to have traders with active trading daily. However it needs investors who bring capital in and out of the market and by supply and demand principle, if capital in is bigger than capital out, demand is bigger than supply, price will rise naturally.

Bitcoin is designed perfectly by Satoshi Nakamoto with its halving every 210,000 blocks (or in time equivalent of 4 years), and the halving year is a year of USA President Election. Noise and interests from community every four years are perfect to increase demand on Bitcoin, by new capital in from new investors and new traders every four year, every market cycle.

Even I am an investor and I see trading is risky, I admit that market needs both, traders and investors.

Surely Bitcoin has been showing more characteristics that befits making it as a long term investment rather than trading for a short term profit and I quite agree with you that will be less of the wild pump and dump behaviors infact it is already happening since when we experienced the last ATH, there has not really been much of the wild pump and dump character. However, even though anyone can do whatever they like with their asset, the truth must always be that, approaching Bitcoin investment for a long term perspective will always be the best compared to trading for short term profit maximization.

That's true. It makes sense and is relevant, if the BTC price is stable of course it will not be considered attractive anymore by its users, both small scale and even buyers who come with large capital to be used as investment vehicles.

Today's small decline in BTC could be triggered by the release of data from ISM which is indicated as bad, thus triggering negative expectations for the accelerated performance of BTC prices. One more thing is the increase in world oil prices of around 3% at this time. We don't know what other plans they have, whether there will be talk of interest rate rationalization again in the future. Who knows.

I agree that it is not stable at all, people think that it's stable but it's long ways away from stable in the end. We are seeing ups and downs, yes it is not pump and dumps, it's ups and downs which is brilliant and I hope that this continues, but it is still volatile. Lets all remember what the low is for 2024 and what the high is for 2024, you will see that there is a major movement going on, and we also had all time high happen this year, and also went under 50k after that as well.

So it's clear that we are going to see a ton of problems on the long run, we need to consider that we are going to make some profits using this current volatility as well. When there is volatility, that means price will go down and up around similar times, so we can use it to buy when it goes down, and sell when it goes up, that is all trading is about. Trading is also great when something is volatile, it is not that good when it is stable, so bitcoin is not stable right now at all.

Volatility means both chance and risk, because price can grow sharply or fall dramatically.
Stability means nearly no chance of growth, like stable coins, you can not invest your money in stable coins and hope that your portfolio will increase in value.

If Bitcoin can grow sustainably with time, of course each market cycle has bullish and bearish years, nothing can rise forever without corrections and bear market, it's good enough as an investment asset.

Year by year, Bitcoin grows and if we ignore red years, we have very good growth of Bitcoin, that is exponential growth.
https://charts.bitbo.io/yearly-candles/

In general, volatility will also have advantages and disadvantages and stability is similar, depending on the purpose of use and preferences of each person, we will have different perspectives.

But as a bitcoin investor and my purpose in entering this market is profit, honestly I don't expect bitcoin to become too stable. That would reduce the attractiveness to investors like me and that is something no investor wants. We always talk about decentralization, privacy, and complete control over our assets when talking about bitcoin but at the end of the day the only thing we care about on a daily basis is its price. So I believe not many people will be happy when bitcoin becomes stable. 

Sometimes I wonder, if bitcoin becomes stable, how many of us will continue to stick with bitcoin or quickly look for something else to replace it.

The Bitcoin market is becoming more populated, and it has grown more than what it used to be years back, most people in the world today now knows about Bitcoin and cryptocurrency and a lot of them are getting in on it. The market is huge, and there has also been increase in the number of investors and users, so having the same rate of fluctuations as of before is not going to be possible. The market is no longer going to spike or drop as it used to do years back. We have seen series of events that would have let to huge increases in price in the past, but now it's never the same.
The market is moving towards stability. It's no longer like before when the market cap was small and few people holds the coins and are able to manipulate it.

It is definitely one of the factors that make bitcoin have less price swings but I also think it has something to do with its price. Obviously with higher prices and higher liquidity, there will be lesser volatility in the market compared to when the prices are low and there is not much activity which accentuates the few buyers and sellers in the market resulting in large price movements.
Who cares if it is boring? I think this is just going back to what bitcoin was initially intended for anyway. With a much stable price, bitcoin will be much recommended to be finally used as a currency for everyday transactions which is what a lot of bitcoin enthusiasts were aiming for anyway. I can understand that many are investors/traders and would enjoy with volatility, but I think there are still a long time before bitcoin truly stabilizes and the market becomes 'boring'.

I think there is no better word to describe it other than the volume of bitcoin holders aren’t like the past where only the few held bitcoin and even the others who held have smaller volume of it and it didn’t matter enough. The bitcoin holders have seen over the years that no matter how bitcoin dumps it usually pumps up back so they don’t get bother again about sale from an institution. Say for example a newly token now is been sold by a major holder then other weak hands will definitely panic and sell off.
So it is as you have said, there still exists weak hands on bitcoin, but to be sincere there are not like before. Even those who don’t have much are also stronger holders who are looking for long term gains and rumors like this institutional sales isn’t going to take them out.

What I feel and think of the market is that people are no longer moved so much by such news. Back then, any little negative news can be able to put fear in the minds of the people, where they will think that such a big government sanction can be able to collapse the bitcoin price, which is part of the reason why they panic sell. 
 
On the other hand, I also think that Bitcoin has grown up to the level that small volume can no longer manipulate the market so fast it can just cause a price increase of a few thousand, but seeing that 2X pump within some days of positive news is rare to happen again. 

I think people have learned to trust bitcoin more. People are not longer scared by rumors like they used to. I'm not saying FUD doesn't exist anymore, but it's not as bad as it used to.
If it was before and the German government decides to sell all it's bitcoin, there will be so much panicking and dumping, but this time around, even though there was FUD, it wasn't as bad as it used and it recovered quickly.
More people now have a better understanding of bitcoin so a few cheap rumours or news will not make them panic sell their bitcoin.
There's also the fact that more people look at the long term when it comes to bitcoin investment so they don't sell at every little dump or pump.

The larger events like the halving still produce long brooding pumps based on emotion that can be counted on. However now we have some insane whales that have jumped in with the new spot ETFs. Instead of seeing quick spikes like the market had in 2018 and earlier the peaks and valleys of volatility will smooth out based on how the whales shift in the "ocean". The good news is that grass roots adoption is still in my opinion stronger than the whales.

Not only that traders and investors are getting smarter.  They have seen different situations in the entire history of the Bitcoin market and is not easily affected or hyped anymore.  With the institutions getting involved, the market become stable and trading in a more conservative manner.  Also the algorithm and settings of trading bots are getting advance making much more intelligent decision in stop losses situation.

The effect of anything always subject to the law of diminishing returns. Just like the buy the rumor and sell the news stuff, the more frequent it is used the lesser the impact will be.

Yes, it is clear that the rule of "buy the rumor and sell the news" in Bitcoin trading is starting to fade, I cannot pinpoint one reason for this because there are many reasons but most likely the main reason is the entry of large institutions.

The entry of large institutions, especially ETF companies, has made the market more stable and the great stress that used to happen because of whales has lessened its impact because there are many whales and large institutions that own huge amounts of Bitcoin and make this manipulation very difficult.

Right now the only ones who have the luxury of selling/buying the news are the insiders. But I think the price goes down and up too fast for anyone to make a decision on whether to use the news to buy/sell. For me the news is more of a general long-term prediction tool but is meaningless without the necessary TA.

All that was approved before spot ETFs are so-called futures ETFs, and they could never influence the price in a more positive sense because they do not trade with real BTC. The approval of these others had an effect on the price, but as we can see, most of these investors do not invest in the long term, because BTC is interesting to them for the reason that they can profit much more in a very short period of time than with most other investments.


For now, it seems that the price has relatively stabilized, but one should not lose sight of the fact that those who invest a lot of money in BTC can profit even with a price change of only 5%, while smaller investors may think that they are in a "boring" period. I think that we are currently in a period of great expectation in the sense that most people are hoping for a big bull run, and I think that this is an important factor in reflecting the stability of the price - because some say that about 75% of all mined BTC has not moved for some time, which (if it is true) speaks in support of it.

First of all, I don't quite see how the title relates to what you are asking, but in this respect, this was already said four years ago and look at the volatility we had. The logical thing is that as the market cap becomes bigger and big players enter the market that are going to hold basically as Michael Saylor does, the price will not fluctuate as much, but that will be at the cost of losing profitability as well.

In any case I think it will be a slow process, I don't think we will see it stabilise at the S&P level in this same cycle.

I don't think the crypto market will be less volatile because we are still a free market and there is not too much regulation yet. But with bitcoin it could be different because bitcoin ETFs have been approved, large investment funds have joined and they are under the control of law enforcement agencies. But for bitcoin to become as stable as gold, that certainly hasn't happened yet and won't happen anytime soon, but we probably won't see bitcoin drop 70-80% in value like previous bear seasons. Volatility will definitely decrease significantly.

“Buy the rumor, sell the news” still exists in the markets but things don’t always work that way, they are becoming more unpredictable.

Volatility also depends on the hands owning the coins. Too much centralization within a few huge investment companies isn't good either. And that is also where we are heading to. ETFs buy more bitcoin in a given timeframe than was mined during that same period. If they and their investors started selling or changed their minds on bitcoin (for whatever reason), the bear market would be in full swing.

Less volatility means less thrill and excitement for us, because we all know that the only way to get rich faster is by means of high volatility. However, on the other hand, that will also lessen the worries and speculations most particularly for newbies as they’re most likely who are making noise in the market, while those early traders and investors are silently studying the market. But nevertheless, if adoption grows for bitcoin from big countries and institutions, surely the lessening of volatility will become unstoppable, which is actually where bitcoin is heading to.

Perhaps it wasn't the best day to create this thread, when we look at the current price and what it was just one day ago. We were close to $66k last night and from there the price dropped down to $63k. I haven't been paying too close of attention to the reasons, but I have seen speculations that it's related to the speech of US Fed Chairman Jerome Powell on the economy and monetary policy and and FUD related to payout distribution of FTX funds. Bad news still knows how to catch Bitcoin off-guard unfortunately.

Why "Buy the Rumor, Sell the News" is Fading in Bitcoin Trading? Maybe bitcoin now is too big the big bank the big companies heck even now a country involving in Bitcoin and the way like it used to not gonna work anymore but I saw bitcoin now had more relation with economy news just like the forex did. the bitcoin correlation same as gold sometimes.

I think the approval application of the Etf was submitted and same time there's been numerous of investors buying huge amounts of bitcoin including the institutional investors which has begot the enticement of the current market rate unlike some sentimental experiences we've had recently.
The blackrock is a promising increase for mini investors as a case of the higher demands of investors stoning the market leading to had lead to the faded dump but if the approval is trashed, then we may experience stagnant values but less dump u like recently.

They will stay as there are many investors, traders in stock market or gold market with lower volatility. Lower volatility will make Bitcoin less attractive than previous years but it is natural because times for x100, x1000 or higher with Bitcoin investment is long gone but if investors can hold their bitcoin a long time, they will get very good profit, better than gold or stocks.

It's because Bitcoin total supply is 21 millions, not more, and many bitcoins were considered to be lost. We don't know exact number of lost bitcoins but many bitcoins were lost by many people, it reduces circulating supply to less than 21 millions.

Bitcoin inflation rate now is 1.7%.
https://charts.woobull.com/bitcoin-inflation/

Cryptocurrencies (altcoins) are pump and dump coins, Bitcoin is not.

It’s true that the market seems less chaotic compared to the wild pump-and-dump days, but saying Bitcoin is now “stable” might be pushing it. Recent Bitcoin ETF inflows, especially BlackRock’s spot ETF, saw $184 million pumped into the market just last month, so there’s still volatility, but more institutional players are now driving it. While that brings some maturity, Bitcoin’s price swings are still significant, though less extreme than before. So, “boring”? Maybe not, but more controlled compared to past years.

The market seems to be maturing now, particularly with the involvement of institutional investors like BlackRock. Their interest signifies a growing acceptance of Bitcoin as a legitimate asset class, and I think this is part of why we’re seeing less extreme volatility than before. Institutional investors tend to bring a more measured, long-term approach compared to retail traders, who often react emotionally to news.

As adoption grows and the market matures further, I do believe we’ll see less of the wild pump-and-dump behavior that was common in Bitcoin’s earlier days.

I agree that those events that you have mentioned actually made the price of Bitcoin to spike or plunge depending if it was a positive or negative news. Since those previous event, is there any recent positive events that has occurred and didn't make the price of Bitcoin to surge high?

The price of Bitcoin was just around $58k for more than 3 weeks but just after the announcement of more acquisition of Bitcoin by micro strategy was made and the other event where Trump paid for burger with Bitcoin, the price of Bitcoin reached $65k.

With the current momentum in the price of bitcoin, I think that the other holders are already feeling the gradual rise in its price in the market. Although it's okay for it to drop as long as it doesn't go below 61k$, because if it goes down there again, we still see bitcoin as weak there.

It's different because we ourselves do technical analysis; we know if the momentum will be positive in the movement that bitcoin is doing, and not every time we hear news that that's what will actually happen to the price value. nor bitcoin.

If the Bitcoin/crypto market becomes "boring", most investors would run away. Price volatility is what makes the market interesting to the investors. The pump-and-dump nature of the crypto market will never go away. Market liquidity is constantly going in and getting out, which pumps the prices up or crashes them down. The army of BTC "HODLers" won't let the price collapse to extreme levels and the new money, that would enter the BTC market would trigger another FOMO phase.
The "buy the rumor, sell the news" method would never go away from any financial market(it doesn't matter if it's stocks, FOREX or crypto).
There was massive hype around the Blackrock Bitcoin ETF and the 2024 Bitcoin halving, which caused the BTC price to hit 73K USD.
 

It's hard to say which one is the biggest, and if we want to compare, we have to do many things for a reasonable comparison.

Price impacts of news in comparison.
Other factors, events that happened during a same period of the main news.

The first part is easy to do, collect prices and compare them, but the second part is more complicated, with many things we can include and also many things that can be important, but we can miss.

I recall that in a previous market cycle, news like "Bitcoin legal tender" and "Bitcoin beach/ city" in El Salvador, Elon Musk invested in Bitcoin, Tesla accept Bitcoin as a payment method, made more price impacts than Bitcoin Spot ETFs in late 2023 (rumor) and actual approvals in January 2024.

Additionally we have to consider that with bigger market cap of Bitcoin, price impacts from any big news will become smaller than in earlier market cycles with smaller market cap.

Why that one is the biggest? it just an options trading, it's an another "ETFs" thing that being approved by SEC.

Not all positive news and bad news affect Bitcoin price because most people only pay attention with the "new" and "popular" thing. Like El Salvador accept Bitcoin as legal tender, it make Bitcoin price rise, but when Central African Republic accept Bitcoin as legal tender, it doesn't make Bitcoin price rise.

FOMC meeting do affect Bitcoin price, so pay attention with every FOMC meeting.

The technical candle has been confirmed to remain the same and has been agreed by many people, but it may not necessarily make you profit in that time. But Fundamental news is not always accurate and historical history is not always repeated. This can be proof that fundamental and technical news is not always profitable. We will depend on the whale on certain conditions, the pump and dump scheme is also greatly affected by these conditions. When a large institution enters, Whale's job will be even harder. They find it increasingly difficult to withstand the upward or downward movement of the market. So maybe it has a little bit of an effect, but I think the market will continue to have that scheme, only time will probably tell.  IMO

That has been happening, bitcoin is gradually becoming more stable over time and we can easily see that through its yearly growth chart. Bitcoin's returns have been decreasing over time and it wouldn't be surprising if Bitcoin one day becomes as stable and less volatile as gold. But in return, that would make bitcoin safer like gold is today.

The more mature Bitcoin becomes, the less volatile it becomes, and that makes it less attractive to speculators looking to get rich quickly. But it will become the preferred choice of those looking for a store of value, a safe haven, or it could be legalized and recognized as a global means of payment like the original purpose for which Satoshi created it.

Most of traders can not change themselves and continue to be loses with time. Very few traders can learn from the market, own losses and change themselves to become successful and profitable traders.

In this market, with each new bull market, there are a lot of noise on media and massive new participants will join this market, they will need time to learn the lesson "Buy the rumors, sell the news".

"Buy the rumor, sell the news". Meme or actual strategy?

See the chart of "How Buy the Rumor, Sell the News looks like", that is insightful on how this strategy works.

Algos/traders are getting smarter. They position themselves way before the event takes place and that’s why their trades look out of order. AI is a big help too. I’m wonder sometimes though, if every trader uses AI powered algos, everyone will be making the same trades. Since nobody will get trapped on the wrong side of the trade, what will happen in this scenario? The price of that asset will either go to infinity or to zero. Interesting times.

It’s been a while since we’ve seen a significant pump in the Bitcoin market, unlike in the past when pump-and-dump trends were common. If I recall correctly, any news involving government approval would cause a pump in price, while negative news, like China’s Bitcoin ban in the past, would trigger a dump, but these effects were usually temporary.

Recently, I’ve noticed something different, like with the ETF example. Before it was approved, traders and investors were highly optimistic that once it got the green light, Bitcoin would "go to the moon." The application process for a Bitcoin ETF started back in 2013, /with many applications eventually approved , but this recent one is the biggest.

When BlackRock announced their application for a spot Bitcoin ETF on June 15, 2023, it pumped Bitcoin’s price, and then there was another surge from the false report of approval.

So, to cut the story short, are we heading towards a more stable Bitcoin price now that institutional investors are entering the market? And if that’s the case, will the market become "boring," with less volatility as the pump-and-dump behavior fades? What are your thoughts on this?.....