Bitcoin Market Has Matured, The Era of Buying on Rumors and Selling on News Is Over

▲ Bitcoin (BTC) / ChatGPT-generated image

An analysis suggests that the old adage that once dominated the virtual asset market—“buy the rumor, sell the news”—no longer holds true as the market has matured.

BeInCrypto reported on February 23 (local time) that the era when Bitcoin prices surged or plunged on a single headline has passed, and the market has transformed into a more mature environment that calmly prices in risk. The outlet cited examples from 2021, such as Bitcoin soaring more than 15% within hours after Tesla announced its purchase of Bitcoin, or plunging within days following China’s mining ban. It explained that the high volatility of the past was largely due to thin liquidity and the absence of a robust derivatives market.

The current market is showing a far more restrained response even to major positive or negative news. Despite events that could significantly impact the market—such as the resignation of U.S. Securities and Exchange Commission Chair Gary Gensler or recent U.S. tariff policy announcements—price movements have unfolded gradually over several days or weeks. This suggests that market participants had already anticipated such developments and adjusted their positions in advance, or are now absorbing news within a broader long-term trend rather than reacting excessively.

The key driver behind this shift is seen as the structural maturation of the virtual asset market. In the past, price discovery occurred immediately in the spot market, but now capital inflows increasingly come through institutional channels such as spot Bitcoin ETFs. Large investors also utilize over-the-counter (OTC) trades and various derivatives, including futures and options, to build positions or hedge risks, significantly reducing the visible impact on spot prices.

As Bitcoin begins to be treated as a macro asset, liquidity conditions and capital flows have emerged as more important indicators than individual news events. For investors who once expected sharp pumps and dumps triggered by a single comment or headline, the current market may appear stagnant. However, experts view this as a process in which the market moves away from emotional reactions and patiently integrates risk into prices, providing evidence that virtual assets are becoming established as mainstream financial assets.

Ultimately, while noise has not disappeared from the virtual asset market, the era when it dictated the entire narrative has come to an end. Investors now face a moment when they must focus less on short-term news and more on the broader picture of global liquidity conditions and institutional changes. The market no longer overreacts and is progressing through a process of managed risk and maturation.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.