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Bitcoin Halving: Expect Those Who Bought the Rumours to Sell the News Soon

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@gandhibaba
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Buy the rumours, sell the news is a well-known trading strategy in financial markets in which a trader buys an asset or commodity (in anticipation of price surge) ahead of a forthcoming event and then sell off, taking profits, as soon as the event has taken place.

By buying the asset or commodity ahead of an event, the trader is said to have bought the rumours. And by selling off as soon as the event is accomplished, the trader is said to have sold the news.

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Since the focus of this article is Bitcoin, the buying of the rumours and selling of the news revolves around the Bitcoin Halving which is expected to take place in about four days from now.

Bitcoin Halving is generally believe to be the biggest crypto-related event on the planet and it occurs every four years after each 210,000 blocks are mined. Also, it is believed that a halving event is capable of positively affecting the price of Bitcoin if the supply is cut by half and the demand for Bitcoin remains equal or greater than it was at the time of the halving.

Although in the case of Bitcoin, the rumour of this year's halving event took off some four years ago it was not until the beginning of 2019 before it gained real momentum that can be tied to the Bitcoin halving. At that same period, Bitcoin bottomed out at about $3,200 from a high of about $20,000 seen in December 2017.

The actions of traders who were obviously buying the rumours about a year into the halving in the February and March of 2019 fuelled the price to a high of $13,000 before it slumped to a low in the $5,000 range.

With the real halving event now only a few days away, as I write Bitcoin on the verge of smashing the $10,000 mark. Historically, the surge may continue for a few more days after the halving. But one thing is certain at this point, that is, those who had bought the rumours about a year ago will most likely sell the news. And when that happens, we could see Bitcoin in the $5,000 to $6000 range again before we begin a new bull cycle.