Can You Trade News Events on a Funded Crypto Account?

Short answer: yes. On a crypto prop firm like FundedXYZ, there is no news blackout, no restricted calendar, and no rule that voids your trades because you clicked buy thirty seconds after a Fed statement dropped.

If you came from forex prop trading, that probably sounds wrong. Half the forex prop industry treats news trading like a rules violation. So let's answer this properly — what the rules actually say, why crypto is structurally different, and why the market just spent 48 hours demonstrating exactly how news trading destroys funded accounts anyway.

Why This Question Matters This Week

On Wednesday, September 16, the Fed hiked rates 25 basis points to a 3.75%–4.00% target range — the first hike since July 2023, passed on a unanimous 12-0 vote, with the median projection now putting the fed funds rate at 4.1% by year-end and 12 of 18 policymakers expecting at least one more hike in 2026.

Now watch what price actually did with that information. On the print, Bitcoin slipped to around $75,000, then recovered above $76,000 within hours — a muted, well-telegraphed reaction. Then came Thursday, the day traders assume is "safe" because the news is out. BTC got sold down to a session low of $75,609 in early trading as the hike hit risk assets, then reversed alongside equities — the S&P 500 swung from Wednesday's 0.45% loss to close Thursday up 1.14% at 7,637.76 — and Bitcoin finished at $76,677, up 0.65%.

That is a $1,500+ round trip over two sessions, with both directions paying and both directions punishing, depending on entry timing measured in minutes. Meanwhile the bond market sent its own signal: the 10-year Treasury yield fell to 4.95% on a hike — the classic tell that bond traders think the Fed is tightening into a slowdown. Nobody trading the headline caught that nuance in real time.

So yes, you are allowed to trade all of this on a funded account. The better question is how to do it without becoming exit liquidity.

The Rules Answer: Forex Firms Ban It, Crypto Firms Don't

In forex prop trading, news restrictions are everywhere. Many firms enforce a blackout window — typically two to ten minutes on either side of high-impact releases like NFP, CPI, or FOMC — where opening or closing positions is prohibited on funded accounts. Some void profits made inside the window. Others restrict news trading only after you're funded, which surprises traders who passed the challenge doing exactly that.

Those rules exist for a mechanical reason, not a moral one. Forex liquidity is dealer-driven. Around a major release, spreads blow out from fractions of a pip to several pips, quotes freeze or gap, and fills land far from where you clicked. Firms couldn't price that chaos fairly, so they fenced it off.

Crypto prop trading is built on different plumbing. Perpetual futures trade continuously on deep centralized order books — there is no dealer spread to blow out, no market close, no reopening gap. Price stays discoverable straight through a Fed statement. That's why crypto-native firms generally have no news blackout, and why FundedXYZ doesn't: no restricted windows, no time limits, no daily drawdown limit. Trades run on Bybit-powered execution, so even during a fast tape you're working one of the deepest books in crypto rather than a second-tier feed. The full ruleset is in our crypto prop firm rules guide — you'll notice what's absent from it.

What "Allowed" Doesn't Mean

Allowed doesn't mean free. Two costs still apply during news, and both count against your account.

Slippage is real and it counts. No blackout rule doesn't mean weekday-normal fills. During a release, market orders eat through thinner-than-usual books, and a stop set to lose exactly 1% can fill for 1.5% in a fast move. Every basis point of that slippage counts against your maximum drawdown. If you trade news, you size for bad fills — our position sizing guide covers the formula; run it with slippage assumptions doubled.

The liquidation map decides how far moves run. News moves don't stop at "fair value" — they accelerate into leverage. Heading into Friday, the long liquidation cluster sits at $76,569, essentially at current price, with roughly $6.7 million in longs exposed to a dip of less than 0.1%. The short cluster sits at $78,739, about 2.8% higher, holding around $6.5 million. A headline that nudges price into either pocket doesn't create a nudge-sized move — it creates a cascade-sized one. Funding rates are mild (BTC at 0.0072%), so leverage isn't extreme, but the downside trap sits closer than the upside one.

The Five-Rule News Playbook

Rule one: know the calendar cold. Every blown account on a news day starts the same way — "I didn't realize the Fed was today." You should never be mid-trade and surprised. FOMC dates, CPI prints, and major regulatory votes are published months ahead. Ten minutes on Sunday covers the whole week. If the calendar is crowded and the tape is hostile, sitting out entirely is a position — we made the full case in when not to trade a funded account.

Rule two: be flat or small through the print. The release moment is a coin flip with leverage attached. Wednesday proved it again — the initial dip to $75,000 reversed within hours, meaning the trader who shorted the hike and the trader who bought it both got stopped somewhere, depending on the minute they entered. You have no edge in that window. Skip it.

Rule three: trade the reaction, not the prediction. The tradeable move is rarely the first spike — it's the second move, after the market picks a direction. Thursday's whipsaw is the template: the early flush to $75,609 trapped sellers, the equity reversal confirmed risk appetite, and the grind back to $76,677 was the cleaner trade — entered with a defined invalidation below the session low, not guessed in advance. Reaction traders wait for the market to show its hand. It costs a worse entry price and buys a dramatically better win rate.

Rule four: half size, wider stops. News-day volatility means your normal stop distance is too tight and your normal size is too big. Cut risk to half of standard, widen the stop beyond the whipsaw range, and accept the smaller position. On a no-time-limit account there is no pressure to make the event "count" — the structure of the day-after playbook applies to every macro event, not just this one.

Rule five: budget the whole event week, not the day. Decide before the week starts how much drawdown the entire event sequence is allowed to consume — say, a third of your remaining budget — and stop when it's spent, even mid-week. Event weeks come in clusters; the CPI and FOMC week playbook walks through the full structure. The traders who survive them treat drawdown like ammunition, not like a scoreboard.

The Bottom Line

Can you trade news events on a funded crypto account? Yes — at FundedXYZ there's no blackout window, no voided trades, no time limit forcing your hand. Crypto's 24/7 order books make the forex-style ban unnecessary. But the absence of a rule is not the presence of an edge. The Fed just showed you the anatomy of a news move: a fake-out on the print, a deeper flush the next morning, and a reversal that paid only the traders who waited for confirmation. Trade the news like they did — flat through the coin flip, half-size on the confirmed move, drawdown budgeted like it's the last one you get.