Definition ∞ Selling the news refers to a trading strategy where investors liquidate their asset positions after a widely anticipated event or announcement has occurred. This action is predicated on the belief that the positive impact of the news has already been priced into the asset’s value beforehand. Consequently, the actual announcement often results in a decrease in buying pressure and a subsequent price correction. This is a common market dynamic.
Context ∞ This trading behavior is frequently discussed in cryptocurrency news, especially around significant milestones for digital assets or blockchain projects. Reports often highlight instances where an asset’s price rallies in anticipation of an event, only to experience a sharp decline once the news breaks. Understanding this pattern helps market participants contextualize short-term price movements and manage risk.
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