What just happened is a good example of why people say you should buy the rumour and sell the news.
Everything was going well when rumour of an ETF approval was spreading, and now that the ETF was actually approved, the price went down.
That is exactly why they say you should buy the asset when the rumour spreads, and sell it when the news breaks that the rumour is no longer a rumour, it’s reality.
Why does that happen? Good question.
Probably because market, any market, depends almost entirely on psychology. It’s a simple formula.
The price goes up when people buy. The price goes down when people sell.
And when do people buy? When they feel confident, comfortable, safe, in doing so.
Feeling good does not always coincide with being good, and vice versa.
Remember 2020? Everything crashed because everyone FELT the world was going to end.
Remember 2021? Everything boomed because everyone FELT the world was not only going to survive, but we were going to thrive.
And so on.
As for me, as a personal strategy, I never sell Bitcoin. I may sell other coins when I need / want, but not Bitcoin.
There are two reasons for that. First, I think tracking the market and trying to predict when it makes sense to buy vs sell is stressful.
Second, I’m in this for the long run so I know that DCA (dollar cost averaging) will sort of save me. Time in the market beats timING the market, as they say.
I’ve crossposted this article on Publish0x
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