As the old saying goes, buy the rumor, sell the news.
As a class of digital assets, the prices of cryptocurrencies are clearly sensitive to market changes that are instantly distributed on the Internet. Staying on top of upbeat news can help crypto traders make huge profits, but navigating cryptocurrency news can be tricky.
Two major obstacles stand in the way: the abundance of potentially relevant information and the difficulty of always being among the first to know what really matters. Extensive research shows that three types of crypto-related events consistently affect the price of digital assets: listings, bid announcements, and major partnerships. This understanding somewhat narrows the range of events that will be of interest to traders.
So what’s the best way for cryptohumans to make sure they get access to potentially important stories before anyone else? There is no shortage of technological solutions, from carefully listing Twitter alerts to various cryptographic data terminals.
For subscribers of Cointelegraph’s own data analysis platform, Markets Pro, it’s easy. They have access to NewsQuakes™, a machine learning service that continuously tracks thousands of primary sources and automatically reports back to the Cointelegraph Markets Pro community within minutes or even seconds of publication.
Here are three examples of how Cointelegraph Markets Pro subscribers took advantage of NewsQuakes™ in March.
ANC: Betting Program Announcement Launches Draw
ANC Price (White), March 2-8. Source: Cointelegraph Markets Pro.
Ad staking can be a powerful market driver, especially when an asset staking program is launched on a large platform and has attractive terms. The launch of Anchor Protocol on Binance Staking with up to 40% annualized return on ANC fits the bill perfectly.
The announcement, which was delivered to Cointelegraph Markets Pro subscribers as a near-instant NewsQuake™, was sourced from the Binance Twitter account. When the news broke, the coin was trading at $3.79, after which it quickly gained momentum. Eighteen hours later, the price of ANC reached $4.90 and then rose even more, breaking the $6 level by March 5th.
SNX: Ambiguous list declaration
SNX price (in white), March 5-12. Source: Cointelegraph Markets Pro.
Another fateful tweet that put huge pressure on the Synthetix Network Token (SNX) price. The news is related to the listing of SNX on Binance.US. Interestingly, there were a few announcements on Twitter about the upcoming roster, but the first announcement (the first NewsQuake™ icon on the March 8 chart) didn’t cause much buzz. However, news of the actual launch of SNX trading (red circle on the chart) caused the price of SNX to rise from $3.98 to $4.77 within 23 hours, up 19.8%.
Sand: great partnership means great benefits
Price SAND (White), March 11-18. Source: Cointelegraph Markets Pro.
Affiliate ads tend to appear less frequently in NewsQuakes™ Top Stories than they do in Top Stories and Posts. However, there are spin-offs where the impact of the price increase overshadows that of most other NewsQuakes™. The rule of thumb is that if you hear about a non-crypto entity involved in a crypto project, the price of the associated token will most likely go up.
Banking giant HSBC is probably familiar to most traders. It was his transition to the Metaverse, facilitated by the Sandbox, that caused the surge of the SAND token. Sure enough, the price of SAND rose vertically almost minutes after Cointelegraph Markets Pro’s audience alerted the news, rising from $2.85 to $3.28 (up 15%) in just 18 hours.