A buy the rumor and sell the news situation occurs when a crypto currency price rises prior to a significant event or news and then dives down sharply after the event occurs.
An example of this would be a crypto currency that is expected to make a major announcement on a certain date. The price of this crypto currency rises in anticipation of the announcement, but then dives after the announcement is made. The crypto currency is likely to fall sharply due to the fact that the news has already been factored into the price. There’s no guarantee that a crypto currency will move up or down after a particular event, but it may be wise to consider this possibility and plan accordingly.