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Over 80% of crypto investors driven by FOMO and FUD

Over 80% of crypto investors driven by FOMO and FUD

GrafaGrafa2024/12/06 09:40
By:Mahathir Bayena

A recent survey by Kraken reveals that over 80% of cryptocurrency holders make investment decisions influenced by FOMO (fear of missing out) and FUD (fear, uncertainty, doubt).

The survey found that nearly 88% of respondents felt they had missed significant gains in the crypto market.

Despite this sense of regret, the data indicates that optimism for future profits outweighs feelings of loss.

Kraken's findings highlight a notable trend regarding the emotional factors affecting investment behaviors in the cryptocurrency space.

“The majority of crypto holders have made an investment decision based on FUD (81%) or FOMO (84%) in the past,” the exchange noted.

This sentiment is particularly pronounced among investors who are anxious about missing out on potential profits from their existing holdings.

The timing of the survey coincided with Bitcoin surpassing $100,000 for the first time, contributing to a bullish market atmosphere.

The data suggests that emotional appeals significantly influence investor decisions, while overall market optimism remains high.

Demographic analysis from the survey revealed that older investors tend to be more confident about future gains compared to younger ones.

Most individuals aged 18 to 29 expressed concerns about missing out on major profits, while those over 60 remained optimistic about further increases in value.

Additionally, the survey identified a gender gap in investment behavior, with a 24% difference between men and women making decisions based on FOMO.

Men appeared to be more susceptible to this emotional pressure compared to women.

Kraken's report emphasises the need for critical thinking when navigating the volatile cryptocurrency market.

While social media can provide valuable information, it also serves as a significant source of emotional pressure for investors.

The firm advises maintaining a rational approach to investment decisions to better manage risks associated with market fluctuations.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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