BTC price moved by emotion and mood! - page 2.

Tungsten-1

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

A study by finance professor Daniele Bianchi says that the prices of cryptocurrencies are influenced by the mood, hype and emotions of investors mostly rather than economic factors. It really sounds horrible. But I think it is partially true. Because if you see the number of people engagement with bitcoin, you will see that a large number of people came to this market after the vibe of BTC rising. And they entered here without gathering proper knowledge.

What do you think about this? What would be its effect???

I agree totally because consider a scenario when a person has 2 Bitcoin and 3 ETH and the market suddenly crashes. Now the thing he has to do is to keep calm and hold his coins but some people just do not and sell in panic. This fall in the demand for the coins actually contributes to the red market and this is the reason panic selling results in loss and also in the disequilibrium.

Hatat

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Quote from: Vinalians on May 27, 2018, 08:08:50 AM

Maybe for some people but for me it is a no because I am investing in bitcoin not just I like it and my mood is good at that time I invested in bitcoin because I knew that there is a big potential on it and in the future it will changes our world. Think of it. It is the future.

The bitcoin is a peer to peer electronic cash system. So many people will use it. It will be used more and more.

Vinalians

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Maybe for some people but for me it is a no because I am investing in bitcoin not just I like it and my mood is good at that time I invested in bitcoin because I knew that there is a big potential on it and in the future it will changes our world. Think of it. It is the future.

supercanada1

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

A study by finance professor Daniele Bianchi says that the prices of cryptocurrencies are influenced by the mood, hype and emotions of investors mostly rather than economic factors. It really sounds horrible. But I think it is partially true. Because if you see the number of people engagement with bitcoin, you will see that a large number of people came to this market after the vibe of BTC rising. And they entered here without gathering proper knowledge.

What do you think about this? What would be its effect???

The mind of this expert is very correct and explains the decision of an investor. Investor should learn how to make decisions? The major issue will solve by these type of analyses and news as the right decision is to hold your emotions and mode that will lead you to a reliable market and you will sell out in a high market that is favorable and profitable but if you do not have any con troll on your emotions then in a market where value is very low for a long time will make you panic selling. These are the consequences if you have hold of your emotions and mode.

availcrypto

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It is true for them who done trade without proper knowledge. But not true if a trade is done by doing technical analysis. Roll Eyes

1Referee

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Quote from: Aikidoka on May 26, 2018, 07:46:01 AM

It is just that some people are stupid and cowards. They believe everything they hear. If the media spreads rumors about Bitcoin falling down and it is going to get to an end, they will believe it and sell their Bitcoins.

It's not that people always start dumping after bad news pops up. People start dumping after whales initiating a dump, which then triggers noobs thinking it is indeed bad news and that the price is going down because of that. If whales don't do the dumping first, bad news mostly won't have that much impact at all. It's called the manipulation game where they mess with people mentally. The short term market is completely rigged.

If whales want it to go up over $8000 right now, they can make it happen and have it stay there as long as they want it to stay there. Everyone will be looking for reasons why the price has gone up, and will come up with institutional capital that entered the market, or that it is good news from regulators, while it's just the whale squad doing it. The smartest kiddies will learn from their mistakes and adapt to how brutal this short term market is, and completely ignore it if they are just long term holding.

Aikidoka

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It is just that some people are stupid and cowards. They believe everything they hear. If the media spreads rumors about Bitcoin falling down and it is going to get to an end, they will believe it and sell their Bitcoins. The problem is not with bitcoin or how it is moved by emotion and mood. Bitcoin is not a human being. But people should finish what they started and not give up on it. If they believed in it, they would not have had forsaken it, and that's final!

batang_bitcoin

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

A study by finance professor Daniele Bianchi says that the prices of cryptocurrencies are influenced by the mood, hype and emotions of investors mostly rather than economic factors. It really sounds horrible.

Horrible as it is but there's truth to what he said. I experienced it when I'm in bad mood by witnessing the flow of the price in a negative way and that gave me a bad mood/emotion that cause me to start panicking.

A crowd of small holders will have the same feeling, there's power in number so altogether the force gathered are making movement to the price.

TheQuin

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Quote from: Pursuer on May 26, 2018, 05:15:14 AM

saying this without explaining what market looks like first is a bit misleading.
the market that this is talking about is the cryptocurrency market in general and mostly focusing on altcoins. generally speaking this market is very small and susceptible to news. and when it comes to altcoins the market is filled with a lot of inexperience people who call themselves "investors" but in fact they are just kids throwing away money and gambling with it instead of investing.
in this market it would have been surprising if things weren't moved by emotions.

All markets are moved by mood and emotions because people are speculating on the future value rather than the assumed value right now. News events can switch that mood equally quickly with stocks, commodities or fiat currencies. The things you describe about the difference between experienced professional investors and inexperienced kids just amplifies that effect. That's a large part of what makes crypto so volatile.

c++btc

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I can't really say now that it is just emotion and mood because those people who are buying in markets without proper knowledge in bitcoin are the people who just got influenced by the people who are rich and the people that are successful in their life in bitcoin.

Pursuer

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saying this without explaining what market looks like first is a bit misleading.
the market that this is talking about is the cryptocurrency market in general and mostly focusing on altcoins. generally speaking this market is very small and susceptible to news. and when it comes to altcoins the market is filled with a lot of inexperience people who call themselves "investors" but in fact they are just kids throwing away money and gambling with it instead of investing.
in this market it would have been surprising if things weren't moved by emotions.

bobo012

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

A study by finance professor Daniele Bianchi says that the prices of cryptocurrencies are influenced by the mood, hype and emotions of investors mostly rather than economic factors. It really sounds horrible. But I think it is partially true. Because if you see the number of people engagement with bitcoin, you will see that a large number of people came to this market after the vibe of BTC rising. And they entered here without gathering proper knowledge.

What do you think about this? What would be its effect???

It is entirely true that it is influenced by mood, and news outlets. I personally think it is worth much more than today prices, it will go to zero or be very high, there is no middle ground for bitcoin.

crzy

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Quote from: JacobLiam12 on May 25, 2018, 06:10:43 PM

You are right. Professor Daniele is partially right. Most of the investors these days are investing in cryptos just because of the hype that is created in market. They lack proper knowledge and information about the Cryptocurrencies.

Indeed, people easily enter the market without having any study about it and sometimes they ended up a victim of a scam. The emotion of every newbie in cryptomarket can really moved the price of bitcoin, we see this thing every time we heard negative news about bitcoin, and the price of bitcoin dump. Emotion is a big thing when you do investing or even trading, so people should know how to control it.

exstasie

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

A study by finance professor Daniele Bianchi says that the prices of cryptocurrencies are influenced by the mood, hype and emotions of investors mostly rather than economic factors. It really sounds horrible. But I think it is partially true.

I think what Bianchi is observing is the effects of low liquidity in the crypto market. Low liquidity means high volatility, which triggers emotional trading.

I think what he's saying applies to the stock market as well (to a lesser extent because of better liquidity). Any period of high volatility is driven by emotion, particularly crashes. And the market has become so exuberant that most indices are completely removed from productive value or realistic returns.

IMO, consumptive commodities are closer than other markets to real value based on macroeconomic supply/demand cycles. But I really think all markets are highly emotional.

Tankdestroyer

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

What do you think about this? What would be its effect???

Do not worry much about it because those who enter bitcoin market by emotion and mood are only noobs here to get rich quick but in reality, they can't without a proper strategy of investing into it. It wouldn't have its long-term effect because bitcoin has real world use cases that institutions are looking into right now but hopefully, they will stop doing it soon because entering the market by emotion is not healthy for the crypto market in general.

samcrypto

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It can be most especially to the beginners because they usually reacts on the news they heard. Its actually risky to depend on your emotion, the btc price should be backed up by its own technology so we can survive in the future.

JacobLiam12

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You are right. Professor Daniele is partially right. Most of the investors these days are investing in cryptos just because of the hype that is created in market. They lack proper knowledge and information about the Cryptocurrencies.

dothebeats

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In part, yes, especially if there is a selloff happening. Most newbies and weak hands tend to give in to their anxiety and emotion especially if they see that the price is tumbling down rapidly and they can't do anything but sell and cut losses or endure the pain. During rises, the hype and short-lived euphoria (or FOMO) dictates how far the push will go. With the last bull run, we see the prices reaching up to $19k a piece, and that's purely fomo starting $10k. It's no surprise that emotions really take cryptos to new heights and lows even without real economic reason.

bitcad4u

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Quote from: CryptoRaymond on May 24, 2018, 09:28:43 AM

A study by finance professor Daniele Bianchi says that the prices of cryptocurrencies are influenced by the mood, hype and emotions of investors mostly rather than economic factors. It really sounds horrible. But I think it is partially true. Because if you see the number of people engagement with bitcoin, you will see that a large number of people came to this market after the vibe of BTC rising. And they entered here without gathering proper knowledge.

What do you think about this? What would be its effect???

You words are partially true.In bitcoin trading,emotion will plays a major role.W hen the price decrease,you will buy a bitcoin with the hope.It will reach some high value in a future.When the price increase,you will hold for the further raise.Maybe the price will increase or decrease based on investors.So don't allow your emotion in this two conditions.

richardsNY

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Quote from: Denker on May 24, 2018, 11:31:40 AM

And just one simple fabricated news is enough to make people dump or fomo in. Cheesy

That's why this market is so interesting for traders and investors, but at the same time also points out how weak it actually is. If there is one thing that does somewhat bother me, then it definitely is the fact that this market throughout the years failed to attract liquidity, and then mainly the exchanges since they make or break the price in the end. In terms of percentages, the current liquidity on exchanges isn't any different from what it was years ago, and that's pretty disappointing. If there was more liquidity available, the massive price swings of today wouldn't exist. We'll see how the market is going to change with institutions tuning in....

Topic: BTC price moved by emotion and mood! - page 2. (Read 408 times)