SUPERBOWL - buy a rumour and sell the news. Is this what's driving BITCOIN PRICE?
INTRODUCTION
Have you ever heard of an event called "The Super Bowl"? I must admit that I haven't, and it does partly feel like I have lived under a rock for quite some time. After all, one could ask: how could I have never heard of it? It seems that everyone around me did.
I also would have probably continued living my life without knowing much about this particular event if not for Bitcoin. However, the other day I bumped into an article "The Super Bowl is now being called ‘Crypto Bowl’ as upstart finance firms spend millions on T.V. ads" which got my attention right away, and if you have not read about it, then perhaps it's worth a few minutes of your time to get updated.
WHY WOULD THAT MATTER? - one may ask
This seems to be a huge event with tons of media coverage, and if crypto ads will be displayed over there, then naturally crypto will get a solid exposure as well. An obviously growing number of people and investors seem to be aware of that fact. Youtuber's are pumping up their followers explaining how enormous and positive of an impact it can have on the crypto market.
And if we look at the recent Bitcoin price rally - so far it seems that it's all working in Bitcoin's favour, at least short term wise.
BUY THE RUMOUR, SELL THE NEWS?
"The crypto bowl" will take place within a couple of days and it will start on the 13th of February 2022. With each day we may witness growing interest with that event and I wouldn't be surprised to see Bitcoin climbing even higher.
However, doesn't it remind you about the saying that goes, "buy the rumour, sell the news"?
If that would be the case, then indeed we may witness very little selling pressure within the upcoming days as many investors may wait for the super bowl to finally take place, assuming that there will be loads of hype around this event and it will bring even more interest coming from retail investors.
EXIT LIQUIDITY?
I'm not sure if you've ever heard that term? My bet is that most of you have and no one here probably ever wants to be providing so-called "exit liquidity".
Based on my knowledge and it's still quite a limited experience, large "whales" are often looking for events which may bring hype into bitcoin or one of the selected altcoins. Knowing such a hype may bring enough buyers to allow them to sell part of their portfolio (and take profits) without crashing the market.
My line of thinking is that "the crypto bowl" could be (and most likely will be) a time for many investors to exit their positions and enjoy profits. I've already experienced a few large crypto events, which always made me very positive about the future of crypto, however most of the time I would be surprised to see Bitcoin price falling down once the event would be taking place.
It took me a while to understand the reasons behind it and to learn what "exit liquidity" means.
Will this time be any different? I wonder.
SHARE YOUR VIEW
My own summary would be: be very careful and keep in mind that the current Bitcoin price movement may be disrupted greatly within a few days. Do not open any long positions until that event is over, and remember to take profits from time to time. Especially if the crypto hype around 13th of Feb will indeed take place.
This is my only advice.
Share your view with me. I read and comment on all valuable comments.
Yours, @crypto.piotr
@project.hope founder
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Greetings friend, really the publicity of this sporting event such as the Super Bowl is very gigantic and the fact that the cryptocurrency market is promoted there can generate some positive point in the rise of BTC, but we must wait to see what happens for now I think it is important to continue evaluating the market.
hello @crypto.piotr,
in Venezuela is uncommon to see the SUPERBOWL, so this sporting event has little importance in my country, but now with much astonishment I see that more people put in their whatsaap statuses information about the SUPERBOWL. I think that after the pandemic many events like this reached new levels of acceptance.
I imagine that the more audience an event has, the greater the chances of attracting investors, with more investments the liquidity of the currency market recovers and this allows many whales to capitalize profits.
In other words, the more money circulating, the more opportunity to sell without dramatically affecting the price, now the problem comes after the event is over and new investors want their money back.
It's pretty striking that you didn't know about the Super Bowl. But yes, it's an event that catapults you if no one knows you and establishes you in stardom if you take advantage of that space.
Let's see what happens with that crypto advertising we'll see there. IN the article you left us, I read that Binance is not focused on offering the same thing, but something different, before and after. As they say in my country, they want to fish in troubled waters.
About the price of BTC, well, let's wait.
I never imagined that the Super Bowl would ever be related to the crypto market, I really don't like this idea.
Although, "the whales" could make their strategic moves this time and many others will be able to enjoy some profits, the retailers will only be left waiting without being able to do much, and obviously like any novelty, when this event happens it is to be hoped that the price of BTC goes down, it looks too obvious.
@crypto.piotr first of all I agree with you buy the rumour and sell the news this is what the big people are doing and making money.
They manipulate the market and with huge pump and suddenly they will take all the liquidity out of the market to bring it down for crash. We need to be careful when we are doing daily trading in the market.
Greetings dear @crypto.piotr I certainly share your opinion since media manipulation is a great weapon that big investors use in their favor to be profitable without affecting the price of the asset.
It is a great event that could generate that many of the small investors get trapped while the big ones capitalize their profits.
Thanks for sharing your experience and perspective. Regards
@crypto.piotr I dont necessary think that this is the only reason that is determening the Bitcoin price action at the moment. I do think though that this event will bring a bunch of new people into the crypto space.
With that being said, I highly doubt that they will go after Bitcoin. I imagine that a bunch of people will se these advertisments and dump their money into altcoins because they want to gamble.
You might be completly wrong with your exit liquidity assumption and I do believe that the week after the SuperBowl will be a red one, especially with the FUD around Ukraine and potential interest rates increases. This might be a good opportunity to take some profits but it is always difficult to time it right.
On the funny note: It is quite refreshing to see that not everybody on the world heard about the Super Bowl. I guess it is not the most popular sport around the world then :D
Agree with you @ga38jem
My goal was to warn readers, that such an event can (and most likely will) be used by many whales to take profit without crashing the price of BTC. And those who will buy BTC or altcoins now may end up being nothing but "exit liquidity" for those large players.
I surely may be completely wrong. But if I'm wrong then the week after the SuperBowl would be in GREEN. And I do expect it to be red.
Cheers, Piotr
Hello friend @crypto.piotr
Market manipulation is evident, especially in the case of cryptos is even more evident, because of the volatility that characterizes this environment.
I think that when we are in bull markets like the current one, is when we have to be more careful, because at any moment the price can go to the floor. And unfortunately most of the investors are small ones, who do not always respect the rule "do not invest money that you cannot afford to lose ".
For this reason, they often get caught in these traps that cause the price to rise and then plummet.
Greetings @crypto.piotr
The superbowl has always been characterized by a worldwide audience and sometimes breaks rating records, that depends on the teams in question, however it has been very mediatic because of the artists who sing at halftime and take that opportunity with that audience that is very large to give news about the crypto market and especially the Bitcoin certainly that will help a lot. It is important to keep in mind that this type of strategies are manipulated by large investors to make their moves and know in the future if they were effective or not, in addition to profit.
Every day there are big Bitcoin detractors and investors doing their best to knock it down or others to get more profits.