For more than 2 years now we are getting used to open our laptops and our social feeds and read about news that is scary. The pandemic, the conflict in the Ukraine and now the economic crisis... All these are describing the big picture of fear that we received in the last almost 3 years. Besides this news, there are daily news that comes to us and influence our thoughts, our behavior and our decisions.
News affecting the crypto market
Good news or bad news act like a magic wand in prices’ evolution for both stock markets and crypto. Few days ago the announcement of Jerome Powell from FED speaking about the efforts to overcome inflation and to keep a restrictive policy for a while has dropped the price in crypto in a couple of hours. The news coming from FED speaks about “some pain” in the market and in the economy.
This happened at the beginning of the pandemic, in March 2020. Even the conflict in the Ukraine has dropped for a while the price in crypto market, even if in this case the price has grown because people considered that crypto may be a good investment at that time of uncertainty. Besides the news coming from the economics and politics, most of the projects in the crypto market bring news speaking about their progresses or about their achievements.
For example the merge of the ETH that is about to happen has brought a bullish sentiment on the market. On the other hand, the problems that collapsed Terra Luna project and now Celsius Network project have brought fear into the market. People were (and are even today) scared about losing their money.
Are the news priced-in already?
In the last months the FED announcements were somehow anticipated. Almost everyone expected to receive news speaking about the “fight” against inflation. Accordingly, very often that news was already in the price evolution, even with few days before the news showing on the screen. But this happens when the news are anticipated. News may be anticipated based on economic reports, government reports, news coming from large companies or industries or news coming such as gossip from different sources (every often these sources are used only to “sell the news” and influence the market price evolution).
Besides the news that may be anticipated, very often the market is influenced by unexpected news. Unexpected news can be related to different natural, economic or social events. But not always this unexpected news is truly unexpected for governments, policy makers or big companies. Even if all these “actors” show as being surprised, they already know that such a crisis or an event may occur, even more when it comes about political, military or economical events.
For my perspective, even the pandemic economic shut down and even the conflict in the Ukraine were already known in the top decision-making groups at global level. And even today, when the economic crisis is “sold” every day on the screens, we may speak about selling news that brings fear and despair among the population, in order to have fear while it comes about investing their money.
How to deal with news in crypto market prices’ evolution?
It is very difficult to stay close to daily news in order to take the best decisions regarding the trading plans. On the other hand, avoiding news can be translated as losing opportunities. So how we can deal with news and at the same time don’t spend hours reading through all the news in the market? First of all we may make a plan regarding the prices where we would enter into the market by buying crypto. Secondly, we can set out some prices as good profits for our investment. Moreover, you may follow certain crypto influencers on YouTube that may bring some summaries regarding the crypto market. But keep in mind to follow those influencers who are not interested in convincing you to take certain decisions!
Finally, we may learn that prices go up few weeks before a certain upgrade, achievement or launch is announced and few days before that event happens, the price starts to go down. Not always, but very often I saw that this behavior is repeating in several crypto projects. I saw that in Elrond, Zilliqa or Decentraland.
Conclude remarks
News is the magic wand in the crypto market and it is used constantly by the “big ones”. Since for large companies and big investors risking few millions dollars is not a big deal, they try to manipulate “the crowd” using news and fear. Concluding, we should always stay close to positive news and positive thoughts, even when it is hard to find them in the media or on the social media channels.
Crises are used by “the few ones” to bring fear among the “crowds” in order to take control of our lives and to take control of our money (in various ways). Learn how to deal with fear! Furthermore, learn not to fear and be patience when you go through hard times. The storm will pass and you will see that after getting out from the storm, you are stronger and more experienced. You may lose some money, but you gained experience, which may bring you more wealth in the future.
Cover Photo by RODNAE Productions: https://www.pexels.com/photo/brown-book-and-wooden-stick-on-white-wooden-table-7978250/
