Definition ∞ “Sell the News” is a market phenomenon where the price of an asset declines immediately following a highly anticipated positive announcement or event. This occurs because market participants often “buy the rumor” in advance, driving prices up in anticipation. Once the expected news materializes, the speculative buying pressure subsides, and investors realize profits, leading to a price correction. It reflects a common pattern of market psychology.
Context ∞ In cryptocurrency markets, “Sell the News” is a frequently observed behavior around major events like protocol upgrades, exchange listings, or regulatory approvals. News articles often analyze whether a particular event will trigger this reaction, providing insights into short-term market dynamics. Traders and investors closely watch for this pattern to inform their entry and exit strategies.
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