Lightning Speed Markets React In Just Milliseconds

A new report from LMAX Group has shown how the crypto and foreign exchange (FX) markets react within milliseconds to world events. The report, called Millisecond Reactions to Market Shocks, looked at how both markets respond to major updates such as government decisions and political messages. It revealed that traders often see price changes within seconds of events.

LMAX Group explained that important actions like interest rate updates from the Federal Reserve, sudden global news, or even tweets from political leaders can cause instant price moves in both markets. The report also shared that such changes are sometimes used to guess future price trends.

Markets React Swiftly To Economic And Political Surprises

The study highlighted how crypto and FX markets behave in similar ways when big news happens. It showed that price movements happen so fast that they are often measured in milliseconds. For example, both Bitcoin and the Euro-to-US Dollar pair have shown instant responses to interest rate changes or political news.

The company shared that this speed shows how strong these markets are when reacting to updates. However, it also noted that while both markets move fast, crypto usually sees stronger price jumps. This is because crypto is more affected by news and online talk, while FX is influenced more by the economy.

Bilal Hafeez, who works at MacroHive and helped prepare the report, shared that their earlier report from last year already showed how fast FX reacts to important US data. He explained that this new study adds Bitcoin to the list of fast-reacting assets and shows how closely its movements match the FX market during key moments.

Crypto Moves Faster But Swings Wilder Than Forex

In one test, LMAX Group reviewed how both BTC/USD and EUR/USD reacted to interest rate news from the Federal Reserve. The result showed both markets responding almost right away. Even a small change or hint from the government can cause a big move, especially in the crypto world.

The report explained that traders need good tools to watch these moves. It noted that access to fast data and deep liquidity helps traders understand what’s happening in real-time. Because of this, experts believe traders should always be ready for sudden price shifts during key events.

The report also gave an example from early this year when the US President paused tariffs on Canada and Mexico. The news caused a strong and fast reaction in both markets. This kind of event proves that even a short message from a top leader can trigger big market moves in seconds.

Arun Sundaram from LMAX Group, who also worked on the report, stated that their team joined with MacroHive to give useful insights into how these markets behave. He added that their data helps traders see hidden patterns in crypto and FX price changes.