Topic: Bitcoin Investor Psychology (Read 721 times)

This is a psychological moment, because when a person sees that the price of bitcoin is falling, he expects it to fall further and is afraid to buy. And when growth begins, he buys in a hurry so as not to miss the wave of growth. All that is true is cycles that will always repeat. Even when the big growth starts, the media starts warming up people and they are ready to buy at a high price in anticipation of more growth, much more growth.

In the recent few days we have seen some good momentum in bitcoins prices. Many people who were waiting for more cheap prices are now worried about this pump. Soon when bitcoins crosses 50k , they will feel missed out and started to buy in fomo. This cycle always repeat.

Generally, the psychology behind it is the fear of Uncertainty, literally most of investors wants to start seeing their portfolios grow in value or have gains almost immediately after making investment, so they need certainly. that's why most of them are skird to buy Bitcoin when the market is red to avoid loses forgetting that risk is also part of any investment, except the ones that have had their trained to buy when market is on red and sell when it's on green.

 The value of Bitcoin has increased exponentially and still is increasing. But when it comes to owning or trading, traders panic if the prices drop and sell them.

Its one of the reasons why most of the investors are losing because they tend to buy and sell without timing. And this happens mostly on the investors that do enter the market without good orientation, and they only believe that bitcoin price will always move upward so if they invest in a high price, they will still make profits from it. Unfortunately, bitcoin is not like that. It has always its price volatility so expect that price fluctuates from time to time.

People are shortsighted, it is as simple as that, buying bitcoin for a price below its average is always a good decision, however in order to do it you will need to overcome the fear of buying bitcoin and that it keeps going down, and very few people can do that, however when the price is going up continuously people think that it will keep going up forever, or at least for a long time so they buy when the price is too high, so it should not be surprising why so many people lose their money in the markets when they are doing things backwards while wasting their money in the process.

I guess that's always the mentality of most of the people to see its value when there's a high demand on it. In case of bitcoin, people see its a good opportunity to buy if the price is already rising because they believe that the day after they bought bitcoin, the price will rise up even more. Not thinking that volatility could suddenly enter and pull the price down. That's when they start regretting that its good to buy at a lower price and sell them at a higher value. In most cases, people misinterpret this so they always end up losing and regretting.

Exactly my sentiment. And I would even go as far as to claim that this is the same sentiment that everyone in the Bitcoin investment world develops after their initial trial and error phase where they lose all their money from panicking, selling during dumps and buying when their fomo kicks in. Expensive lessons to be sure, but I feel like its the only way some people learn, which is to say, through pain.

What can you do, everyone is only human.

You are right. That is the only reason that the investors that actually understand the market keep buying regardless of the price. People Have invested in Bitcoin back at the last ATH and those that didn't sell, of cause, made profits after the long Bear market and this has always been the case if you look at the Bitcoin chat for years now Like the saying goes, ‘The best time to invest in bitcoin was yesterday,

I can attest with this kind of scenario. I have seen so many times already different kinds of people whenever there's pump and dump happening and mostly, these people are just everywhere. Whenever bearish market enters and coins suddenly drop price position, people are fearful, they tend to sell right away. Meanwhile, when price position is low, most people still try to enter despite the price which doesn't totally makes sense. I believe this is mainly because of three main factors which are greed, loss of hope, and unchecked and lack of information.

Greed. Most people whenever they see high price value, they would want it too. I mean, who wouldn't want gains right? However, some people do it the wrong way. Instead of buying in low price position, they buy in high position. Most people are encouraged and enticed to take the risk because of the hype. And oftentimes, they were left behind in the upper position because most people, particularly the experts already took profit resulting to gradual change in value specifically decreasing manner. Some people are just too greedy to generate money and in the end, they end up losing instead of profiting.

Loss of hope. Some people are not really emotionally strong to risk whenever they see unpleasant scenarios such as seeing a downtrend in graph. They tend to be fearful and doubtful whenever dips happen. Some thinks that it may not be able to recover and they would just end up losing money if they would risk it. Which is also justifiable since not every dip is worth it to buy. But sometimes, you just really gotta take the leap of faith and trust in the coin as long as you know they have a nice whitepaper and projects in the future. I have heard so many confessions of regrets because they didn't buy in low position. Turns out, the coin they think will continuously dump suddenly skyrockets after several years. Just like what happened with bitcoin.

Unchecked and lack of information. This is one of the factors too and actually it plays a great role. This usually is the reason behind the greed and fear of investors and traders. Oftentimes, they are misinformed about something and didn't bother to have a fact-checking before delving into it. And sometimes, they just don't bother to search and equip themselves with knowledge.

Being so fearful won't get you nowhere the same way with being so greedy. So you must really know when to invest and when not to. And being so complacent to the point that you no longer check and feed yourself necessary knowledge about the things you do makes a conflict too. Let us always be a responsible investor. Let's do our part such as doing in depth research to avoid wrong timings and regrets.

To make profit all the time in their investment. Making a profit all the time is not an easy task to investors because Market is unpredictable. Now that the price of bitcoin is still not stable for investors to make a good profit from their investment and it makes them to feel bad in their investment.
Investors thinking right now, is for exchange market to improve higher for them to achieve passive profit from their investment.

What they really want is to increase their profit in a rush way when they see the price is rapidly increasing at the moment, they also flock to invest in that situation not giving any second thought to what is about to happen when the early investors also start to sell their bitcoins one after another. To get a decent amount of income is not really easy because you need a mindset that can persevere the malicious event that always hunting the cryptomarket and that's the volatility. they don't believe in investing early because they don't see the fast result rather they prefered to join the market in rush buying.

They'll always fall in line when bitcoin is soaring and topping. But when it's dropping, they're thinking about the end and death of bitcoin and how they'll get their ROI in no time.

Newbies and not, they'll have that mindset as always. The thinking they got is it's okay to ride when it's pumping at least they know that it's not yet going down. So while it's active going to the top, that's when they'll ride.

People may have many reasons why they fail to meet up with the opportunity whenever bitcoin price falls low. The following reasons maybe because of fear of buying  bitcoin when the price seems low because of the news they get about bitcoin,  how people bring fake news as bitcoin is coming down it may likely crash . News like this draws new investors attentions back.
Also, for some when the price of bitcoin falls low they not be ready for it because of lack of funds to purchase bitcoin and end up missing the opportunity.

the queue for $69k was very small. only a few people were buying thats why it topped out. no one else left to buy
if the demand was higher at $69k then it is at $40k then the price would not have stalled at $69k

what you find is at the moment kazahkstan. just set up mining and its costing them $35k. they need to pay bills for the start up costs so they are heavily in sell mode

america are at $43k so they are in buy mode
kazahkstan can make profit while price is $40k but they dont want to have american mining again if the price goes over $44k. because then the hashrate competition kicks in which would increase kazahkstans costs and reduce its reward. so they really want to sell coin right now
keeping the price below $42k safety zone, but also keep it above $35k so they can profit.

while in this "safezone" of $35k-$42k kazahkstan can pay off its build costs and expand by 20%..
if the price shifts to $44k
american mining will reduce reward shares by more then 20% and americans would stop buying and start selling. leading to demand for kazahkstan mined coins to dip.

kazahstan doesnt like this so they are happy keeping the pressure on to keep bitcoin between $35k-$42k

it is depend on your views and respect to bitcoin , if you only treat this as purely profiteering then sorry to say this is not for you.
but if you know that this is not just a thing for profit but also for usage , this is a currency and must circulate , not just a place where you can buy and sell.
actually we are just talking about our views but we are not anticipating what is their real intention why acting like this.

That's because they missed out on the hype train and they think that there's still a possibility that the pump will go much higher so they still get in despite being a delusional thing to do. In my opinion, we can use that to our advantage knowing how the mind of the masses works, you can make lots of money out of it.

Just to read the predictions that it will go down below 30k, any new user will be in hesitant mode to buy bitcoin at that point. So for me, such reaction is just normal. We are just humans subject to this kind of emotion. We are losing confidence when the market is in red position. Only few people have their strong support even if the market is going down, those are people who already saw the up and down motion of the market countless times and of course, they are strong believer of bitcoin. Their decision usually pays off as we see that bitcoin bounces again and again after the dump.

Here it is detailed what a conglomerate of people with almost no knowledge about the market represents, who get carried away by what they say in the news, and $35k represents the opportunity, buying in a dip will always be the best option to do, what happens is that very few have a high financial culture to accept that this can happen in that way, there the Fomo is detailed, the amount of manipulation that exists in the media, and that there are very few people who actually think and seek the money.

I think this is always happening.
Let's see right now, the price of Bitcoin start rising up. I am sure enough that many people are waiting to buy Bitcoin again because knowing that the price is rising up. Why they didn't buy when the price was under $35k some days ago? Because it is about afraid situation triggered that made them not sure whether the price will rise or be bearish. Moreover there are many FUD that say about the bearish market is already coming.
And this will be happening again, people are more willing to buy Bitcoin when the price is at high