- Crypto investors have developed a new way of responding to economic news.
- Whales are responsible for the many fakeouts that Bitcoin experienced in 2025.
- Traders are adopting the “Buy the Rumor, Sell the News” philosophy.
Santiment’s data and analytics professional, Brian Quinlivan, has identified a behavioral pattern among crypto investors, particularly during significant economic policy releases in the US. In the latest “This Week in Crypto” podcast, Quinlivan explained how Bitcoin traders behaved ahead of the latest FOMC meeting, consistent with the trend that reflects notable FUD in the crypto market.
Fakeouts Have Become Common in the Bitcoin Market
According to the analyst, the Bitcoin market experienced numerous fakeouts during the period leading up to the latest interest rate cut announcement in the US. Quinlivan highlighted the buildup ahead of the interest rate cut announcement, which was followed by a selloff by the smart money in a three-wave pattern amid the Fed Chair’s hawkish speech after the announcement.
Related: Bitcoin Price Prediction: Analysts Eye $115K Breakout As November Seasonality Turns Bullish
Historically, interest rate cuts boosted demand for risk assets, including Bitcoin. However, the pattern experienced a notable deviation in 2025, with BTC and the crypto market reflecting a “Buy the Rumor, Sell the News” pattern. The analyst noted that this pattern has occurred repeatedly throughout the year, suggesting a shift in the crypto market narrative.
Whales are Behind the Crypto Market Fakeouts
In the meantime, the analyst noted that the market this year has repeatedly moved in the opposite direction of crowd expectations. According to him, trading data reveals that the selloff experienced in the crypto market is driven by whales and large investors who comprise the “smart money.” Hence, despite the initial expectation of the broader crypto market, the key stakeholders continue to determine the trend.
Related: Bitcoin At $2 Trillion Still Faces Psychology Risk Newton Learned The Hard Way
Bitcoin’s price dropped 8.7% last week following the latest FOMC meeting and the announcement of an interest rate cut in the US. The decline saw BTC drop to $106,303 before establishing a new support. Meanwhile, it is worth noting that the US Fed stated that it will continue to cut interest rates in the coming months and end quantitative tightening by December 1. However, the crypto analyst thinks BTC traders should focus on the three-wave pattern around these events to avoid being taken by surprise and falling victim to market fakeouts.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
