On Friday, bitcoin experienced a decline as a selling trend persisted following the launch of spot Bitcoin exchange-traded funds (ETF). Some have taken this as evidence that ETFs are going through a "sell the news" phenomenon.


**What does ‘Buy the Rumor, Sell the News’ Mean?**


The phrase "Buy the rumor, sell the news" is a commonly used expression in trading. In this trading context, it signifies that when favorable news is anticipated in the future, the price often rises in anticipation of the event but may not necessarily continue to rise after it occurs.

Market prices tend to adjust in anticipation of upcoming events, or "the rumor." By the time the event actually transpires, most individuals who intend to own the stock or currency have already made their purchases. Consequently, when the event unfolds, there are fewer buyers left to drive the price higher. This situation prompts some to sell and capitalize on their profits.

Similarly, if positive news is released and a stock or other asset experiences a drop in price, traders will often remark that "the information was already priced in." This means that the price had already increased before the news was officially announced, indicating that the asset's value had already accounted for the positive impact of that news.

Investors employing this approach typically target underpriced markets when indications suggest an asset could generate increased future cash flows.

Meanwhile, ETF issuers expanded their cryptocurrency reserves by an additional 10,667 Bitcoin (BTC) on the fifth day of trading, amidst rising trading volumes. According to data gathered by [CC15Capital](https://twitter.com/Capital15C/status/1748122024550031386?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1748122633260933246%7Ctwgr%5E409b747bc66184f7c6044e3a4ca1cd18529d533e%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fspot-bitcoin-etfs-scoop-up-10000-btc-day-5-trading), ETFs collectively acquired a net sum of $440 million worth of bitcoin on January 17. BlackRock's ETF accounted for the majority of these acquisitions, with 8,700 BTC valued at nearly $358 million.


Some insist that bitcoin prices are going through a "sell the news" phenomenon.


Sat Jan 20 2024

What Does ‘Buy the Rumor, Sell the News’ Mean?

JP Morgan: Grayscale's GBTC Profit-Taking Likely Over

SEC Postpones Decision on Fidelity's Spot Ethereum ETF Proposal

BlackRock, Grayscale Drop ETF Ads

Bitcoin ETF Trades Reach $3.5 Billion

BitGo CEO Says Bitcoin ETF Approval is Near

SEC Postpones Decision on Fidelity's Spot Ethereum ETF Proposal

Sat Jan 20 2024 What Does ‘Buy the Rumor, Sell the News’ Mean?

JP Morgan: Grayscale's GBTC Profit-Taking Likely Over

SEC Postpones Decision on Fidelity's Spot Ethereum ETF Proposal

BlackRock, Grayscale Drop ETF Ads

Bitcoin ETF Trades Reach $3.5 Billion

BitGo CEO Says Bitcoin ETF Approval is Near

SEC Postpones Decision on Fidelity's Spot Ethereum ETF Proposal

Sat Jan 20 2024

What Does ‘Buy the Rumor, Sell the News’ Mean?