Crypto market analyst known as Mr. Anderson on Twitter suggested that the old adage of “buy the rumor, sell the news” does not apply to the current situation.
According to Anderson, selling when the Bitcoin (BTC) spot exchange-traded fund (ETF) is finally approved — as many market participants anticipate will happen very soon — is not a good idea. He wrote in a Jan. 2 tweet:
There’s a big difference between saying Buy the Rumor, Sell the news 2-months ago vs saying it today.
The point is that the big money should have been made heading into this decision so that you don’t have to be Nostradamus and know what the exact reaction will be to the the news itself.Mr. Anderson
In a separate tweet sent out in July, he said that to understand the impact of the approval of a Bitcoin ETF one needs to look no further than to what happened with gold when a gold ETF was launched. He posted an illustrated chart that shows how gold’s price started growing much quicker following the launch.
In the chart, Anderson wrote that gold’s growth became parabolic following the launch of an ETF, but suggested that the impact on Bitcoin should be even greater. The reason is that Bitcoin “has a much more limited supply than gold.”
Furthermore, earlier today Anderson also reposted a survey with nearly 6,300 participants asking whether the Bitcoin ETF will be a “sell the news” or a “buy the news” event. Of all the respondents, 51.3% chose “buy the news” as their answer.