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Fear, Greed, and FOMO: The Enemies of Crypto Investors

Fear, Greed, and FOMO: The Enemies of Crypto Investors1 min read
  • January 13, 2024
  • by UH News

In the ever-fluctuating world of crypto, deciphering the intricate dance of market sentiment is as crucial as decoding economic indicators. Beyond cold numbers, emotions and biases wield a mighty influence, with social media commentary capable of catapulting or crashing fortunes in the blink of an eye.

Recent research from the Seoul National University of Science and Technology unveils the profound impact of emotions on Bitcoin trading. The ebb and flow of these emotions sway the trading volume and volatility of BTC, inducing extraordinary price movements that can shape the financial landscape.

In this setting, the Cryptocurrency Fear and Greed Index acts as a compass for the current prevailing sentiments in the market. On this scale, a rating of 0 signifies extreme fear, indicating irrational overselling by investors, while 100 reflects extreme greed, foretelling a potential market correction.

To calculate this index, platforms like CoinMarketCap use top-tier crypto data with unique insights into user behavior, presenting a more nuanced snapshot of the crypto market's emotional climate.

Currently, the market mood hovers around 67 points, a realm of moderate greed, fueled by optimism surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs) in the US and a rebound in BTC value. Contrastingly, during market downturns like the one witnessed in November 2021, fear levels plunged to a mere 16 points.

Emotions Run High: Unveiling the Impact of Stress on Decision-making

Beyond fear and greed, the crypto lexicon introduced terms like FOMO (Fear of Missing Out), encapsulating the fear of missing out on a perceived lucrative trend. These emotional decisions manifest when rational thinking takes a back seat amid stress-induced euphoria or panic.

In light of this, it becomes imperative for investors to grasp these concepts and cultivate a pragmatic investment approach, steering clear of being swayed by market volatility. Emerging digital currencies like Unicoin are pioneering transparency and stability, aiming to mitigate the disturbing effects of market volatility.

Unicoin––the official crypto of The Unicorn Hunters Show––distinguishes itself by being backed by real estate assets surpassing $1.3 billion, acquired through its 140 program. Under this initiative, real state owners can shift their properties to unicoins at 140% of their appraised value. Additionally, Unicoin holds shares in select companies f eatured in The Unicorn Hunters Show.Initiatives like Unicoin usher in a new era, offering investors informed choices through transparent and regulated alternatives, a far cry from the opaqueness associated with the first generation of cryptocurrencies.