Buy the rumor sell the news is a simple succinct phrase which will give you guidance right across the range of market asset.
The reason such simple reasoning applies to widely and true for centuries is that it applies to humans who deal the prices and thats key most of the time. Purely in a logical determination only you are not incorrect to assume less supply brings a higher price.
The explanation is that BTC has speculators, most markets do and they know ahead of time the supply will be lower. People buy ahead of the news and the price rises in proportion before the event. This isnt a one off, its almost every time you can expect some similar fashion of movement to this.
agreed that this saying has influenced the whole market to some extent, even I think whenever there's rumour, the price just increased instantly it means people are really trying hard to get ahead of the other in term of timing.
after all if you are early, that means you get best opportunity compared to others and probably gonna make a ton of money moving forward.
but this words especially holds true when it comes to current condition, halving are already hyped up since back then when the price of bitcoin was still sub $40k, i'm sure right now people are more focused on the other thing such as waiting for the rally to finally comes in.
most investors who think that bitcoin will rise immediately after the halving are fomo investors who don't understand bitcoin at all. they think that when they buy it before the halving, they will immediately get a profit, even though what happens is that the price of bitcoin will not immediately rise after the halving.
we just have to wait and see whether these fomo investors will be able to stand it or not seeing bitcoin prices become unstable in the next few months.
agreed with this, but then again if these people honestly have patience to wait for few months they'd be seeing some massive price increase its just matter of time in my opinion that the price just gonna climbs.
the timing currently is just not right so there are many people holding back from further buying probably waiting for the right time.
but it also means that if we are diamond hand, buying right now might works wonder for future.