What Does “Sell the News” Mean in Crypto? Typical Cases and Market Logic Explained

Sell the News is a classic saying in the financial markets that describes a phenomenon: when the market anticipates a positive event, investors buy in advance, pushing up prices; however, once the event actually occurs, prices tend to fall. The Crypto Assets market, due to its high volatility and strong speculative nature, has become a “textbook stage” for this phenomenon.

Typical Cases: Expected Speculation vs Actual Implementation

1. Coinbase Listing Event (2021): After Coinbase announced the submission of its listing application in December 2020, Bitcoin price Then it began to rise all the way up. From about $29,000, it soared to $64,000 before its listing in April 2021, an increase of over 300%. However, on the day of the listing, after a strong opening, the price of Bitcoin quickly reversed and fell to around $30,000 within a month. Logic: The market had already digested the symbolic significance of being the “first compliant exchange to go public”, and after the favorable news materialized, investors collectively took profits.
2. Approval of Bitcoin Spot ETF (2024): Since BlackRock submitted the ETF application in June 2023, Bitcoin rose from $25,000 to $49,000 before the approval in January 2024. However, after the SEC officially approved 11 ETFs, Bitcoin began to decline, once falling below $40,000. Logic: The “institutional narrative” driven by ETF expectations exhausted buying pressure, while Grayscale’s GBTC faced selling pressure due to liquidation, leading to a short-term sell-off.

Why is it easier for Crypto Assets to experience Sell the News?

• Market forward pricing reflects future expectations. When “positive rumors” emerge, speculative funds flood in to drive up the assets; when “news is confirmed,” the lack of new momentum to support prices leads to selling pressure dominating the market.
• News-driven cycles in Crypto Assets bull markets often rely on events such as halving, regulatory easing, and technological upgrades. The market is in the “wealth creation phase” (such as in 2023. Solana Ecological explosion) layout in advance, to the “wealth distribution stage” (such as the discussion of Trump’s encryption policy in 2024) positive news will be fully priced in.
• Leverage and sentiment amplify volatility; futures contracts, leveraged trading, and Memecoin culture exacerbate “FOMO chasing” and “panic selling.” For example, after Circle’s listing in June 2025, the stock price plummeted by 15% in a single day, reflecting a sentiment reversal after the positive news was priced in.

How should investors respond?

1. Pay attention to the expected timeline: Get involved early during positive events (such as the Federal Reserve’s interest rate cuts or Bitcoin halving) to avoid chasing high prices close to the event’s fruition.
2. Verify fundamental support: Distinguish between “narrative-driven” and “demand-driven” projects. For example, Ethereum’s Pectra upgrade continues to attract funds due to a genuine enhancement in staking experience.
3. Be wary of excessive speculation signals: If 95% of gas fees on Solana are contributed by 1% of whales, or if Memecoin trading accounts for over 60%, it may indicate a bubble.

The crypto market is always repeating cycles, but not in a simple loop. Recognizing the essence of “Sell the News” is understanding that prices already incorporate consensus expectations. When the “news” becomes common knowledge, the risks often outweigh the opportunities.