- 88% of crypto traders regret missed gains, showcasing FOMO's strong influence on investment decisions.
- Emotional trading impacts 63% of portfolios, highlighting the risks of FOMO and FUD in crypto investing.
- Despite regrets, 84% of investors remain optimistic about future gains, driven by Bitcoin's $100K milestone.
A new survey by Kraken sheds light on how emotions influence cryptocurrency traders. Fear of missing out (FOMO) and fear, uncertainty, and doubt (FUD) dominate decision-making. The survey, which included 1,248 participants across the United States, revealed that 88% of respondents believe they missed significant gains in the digital asset market.
The survey found that investors have emotional issues, especially during the current bull run driven by Bitcoin. Following its historic increase of 126% since the start of this year, BTC reached $100k on December 5. Many traders believe the main cryptocurrencies have gained significantly, heightening their feelings of missed opportunities.
FOMO and FUD Shape Investment Decisions
Kraken’s research has highlighted that emotional drivers like FOMO and FUD dominate investors’ choices. About 84% of respondents still believe there are opportunities to invest in cryptocurrency. However, 60% stated sudden price hikes have been their biggest FOMO trigger.
Moreover, 81% of participants made trading decisions influenced by FUD. At the same time, 84% acted on FOMO during price increases. These emotions significantly impacted 63% of holders. They admitted that emotional decisions negatively affected their portfolios.
Demographics and Emotional Trading
Furthermore, the survey also revealed differences across demographics. Younger investors felt they missed earlier market gains. Meanwhile, older participants remained hopeful about future price movements. Interestingly, more men than women admitted trading due to FOMO.
Kraken emphasized that emotional investing varies by group. However, impulsive decisions can affect anyone. The report suggested adopting a rational, planned approach to trading to mitigate emotion-driven risks.
Bull Market Fuels Optimism Despite Missed Opportunities
The current bull market has boosted optimism among investors. Despite feelings of regret over missed gains, trading involving Bitcoin has soared. Other altcoins, such as XRP, have also experienced historic growth. XRP has recently surged past Solana and Tether, now ranking as the third-largest crypto asset, with a current price of $2.25.
The excitement surrounding rising prices highlights future opportunities. Traders remain focused on the evolving market. While many feel they missed out, the data suggests optimism continues to drive the crypto community forward.
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