· 5 min read
How Crypto News Moves Markets
Crypto trades continuously, with thinner liquidity at the worst moments. That changes how news is absorbed.
There is no close, so there is no overnight period in which a market can digest news calmly. Reactions happen immediately, including at hours when order books are thin.
Liquidity is time-dependent
The same headline produces a larger price move at low-liquidity hours than during peak overlap with traditional market hours. Weekend moves are frequently retraced when depth returns.
Regulatory news is a repricing of risk
Rules do not change the technology, they change who is allowed to hold the asset and at what cost. That is a discount-rate story, and it can move price far more than protocol news.
Position size is the only reliable control
Double-digit daily moves are routine. Any approach that depends on a stop being filled at exactly the stated level will eventually be disappointed, so size positions on the assumption of slippage.
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News does not move prices by itself. What moves prices is the gap between what was expected and what was reported.
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Read a setup in the order that protects you: stop first, then target, then thesis.
Understanding Entry, Stop Loss and Target
Three prices define a trade. Each one answers a different question, and mixing them up is expensive.