BTC price moved by emotion and mood!

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Quote from: n0ne on June 26, 2018, 11:25:29 AM

I don't find this to be an usual price move. Some external factors with the support from several business seems to be manipulating the entire cryptocurrency. The emotions and mood of the common man will think in such a way. There were several other factors affecting the life.

If they drop the price lower, we will buy more and promote bitcoin even more.

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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???

In my own opinion, traders today are selling their coins based on their emotion because all they want is to earn more profit and since there are a lot of people today who are preferring to sell then it will just keep on dumping.

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I don't find this to be an usual price move. Some external factors with the support from several business seems to be manipulating the entire cryptocurrency. The emotions and mood of the common man will think in such a way. There were several other factors affecting the life.

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Quote from: Proton2233 on June 26, 2018, 10:03:18 AM

Quote from: Denker on June 25, 2018, 02:52:51 PM

Quote from: SixOfFive on June 25, 2018, 10:17:06 AM

I agree with your thoughts on this. Emotions are one of the most important factors that affect decision making. But emotions should not get over us. A good investor should be able to control his emotions for earning profits in the long run, as there are many ups and downs in the value of cryptocurrency. So what one can do is avoid checking the prices again and again, especially when the market is low.

Yes handling their emotions is the biggest issue many traders or retail investors have, especially at the beginning.
You can have read several books, know all the theory, but if can not be cool when it is needed you will very likely screw up your trade or investment.
That's the main reason why so many sell at the bottom or buy the top.
Often you have to do the exact opposite of what the majority is doing or thinking.
Buy when the majority of market participants is crying and sell when this majority is thinking about to get their first Lambos. Cheesy

In theory, it sounds simple but tell me why so many people are losing money. It is very difficult to deal with emotions. It seems to me that now the market is frozen in an emotional confrontation. Those who panicked have already sold the coins. There were only the most persistent. It's funny, but those who panicked at first won.

Most of the time we do hear out that we shouldnt panic sell but if we do try to elaborate or dig deeper and realize then those who panic sell or just sell off to take profits as soon as they can without holding or plan for long term do usually get benefits on bitcoins price. This is indeed correlated on emotion and once its being started specially when we do hear of on fuds or negative news circling around we do easily got affected and it do acts like on domino effect.

Harlot

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It is true, with whales doing the first move it is up to us to take the first bite on the bate or not. And if the small players do it can create a ripple effect in the market. People who succumb to their emotions while trading cannot be really called as investors as they are letting their emotions ruin their trade. Not to mention that bad news are always there for them to trigger panic in the market, they always think that one news can bring down the mighty BTC but the honest truth is they are the ones bringing down BTC.

Proton2233

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Quote from: Denker on June 25, 2018, 02:52:51 PM

Quote from: SixOfFive on June 25, 2018, 10:17:06 AM

I agree with your thoughts on this. Emotions are one of the most important factors that affect decision making. But emotions should not get over us. A good investor should be able to control his emotions for earning profits in the long run, as there are many ups and downs in the value of cryptocurrency. So what one can do is avoid checking the prices again and again, especially when the market is low.

Yes handling their emotions is the biggest issue many traders or retail investors have, especially at the beginning.
You can have read several books, know all the theory, but if can not be cool when it is needed you will very likely screw up your trade or investment.
That's the main reason why so many sell at the bottom or buy the top.
Often you have to do the exact opposite of what the majority is doing or thinking.
Buy when the majority of market participants is crying and sell when this majority is thinking about to get their first Lambos. Cheesy

In theory, it sounds simple but tell me why so many people are losing money. It is very difficult to deal with emotions. It seems to me that now the market is frozen in an emotional confrontation. Those who panicked have already sold the coins. There were only the most persistent. It's funny, but those who panicked at first won.

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Quote from: alex M on June 25, 2018, 12:05:14 PM

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.

Yes, I am more convinced that it's a no. But we have different perspective in making our own insights regarding this idea. Maybe some other people believe that phenomenon. But for me, price movement depends on the demands and supply which are changing every now and then.

Well if the market is like this, where there are really no significant fud or a reason for fomo, then yeah i don't think the movement is influenced much by the people. For sure the december pump last year though was caused by fomo and hype and what happened after that was fud and panic.

Denker

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Quote from: SixOfFive on June 25, 2018, 10:17:06 AM

I agree with your thoughts on this. Emotions are one of the most important factors that affect decision making. But emotions should not get over us. A good investor should be able to control his emotions for earning profits in the long run, as there are many ups and downs in the value of cryptocurrency. So what one can do is avoid checking the prices again and again, especially when the market is low.

Yes handling their emotions is the biggest issue many traders or retail investors have, especially at the beginning.
You can have read several books, know all the theory, but if can not be cool when it is needed you will very likely screw up your trade or investment.
That's the main reason why so many sell at the bottom or buy the top.
Often you have to do the exact opposite of what the majority is doing or thinking.
Buy when the majority of market participants is crying and sell when this majority is thinking about to get their first Lambos. Cheesy

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And that is why so cooled bitcain is worthlesss. Tjen you will see 2K, you will get it) HODL))))

alex M

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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.

Yes, I am more convinced that it's a no. But we have different perspective in making our own insights regarding this idea. Maybe some other people believe that phenomenon. But for me, price movement depends on the demands and supply which are changing every now and then.

mriansa

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it seems that it does not change the bitcoin price it depends on the conditions and situations that exist in some media that provide requests and news about bitcoin when bitcoin there is good news then the price will move quickly and crowded.

vickybitcoin

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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???

This is why i think that the negative comments nd posts of other people posses a great threat to the down and up movement of any cryptocurrency because the morw people say positive comments about a certain platform the more people are incline to join and invest nd the more people say negative thing because of the down trend the more the price will fall. so we must uplift bitcoin and spread positive word.

SixOfFive

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I agree with your thoughts on this. Emotions are one of the most important factors that affect decision making. But emotions should not get over us. A good investor should be able to control his emotions for earning profits in the long run, as there are many ups and downs in the value of cryptocurrency. So what one can do is avoid checking the prices again and again, especially when the market is low.

laluna24

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Quote from: rat03gopoh on May 27, 2018, 10:50:17 AM

Yeah maybe, bitcoin prices are largely influenced by private investors. But still as if still controlled by the situation or external factors such as bad news and the volume of circulation in the market.

Bitcoin prices movements partly affects the moods and emotions of an investors. Yes it influences hows a person attack the market. Also as others said never be emotional during trades as this is really affects the market.

timerland

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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's been known pretty much since day 1 of bitcoin speculation becoming a thing - bitcoin's pricing can be strongly influenced by mood of the market, or market sentiment. Even though it may be clear that bitcoin is entering a buy zone, people may still panic sell under the circumstances and drive prices even lower before bottoming out.

The effect isn't much, in my opinion. Only effect I could think of is that it's a reason why bitcoin is currently so volatile. People not yet are adopting it as a unit of account in trade, but more of an investment, which leads to increased volatility due to the psychological nature of trading. It's not really that big of a deal.

It's not something horrible. It's the case with any asset class that is being traded, not just bitcoin.

jasonhart

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I don’t agree with you. I think people invest in Bitcoin for its potential. BTC Bitcoin has a very good potential to invest and that attracts the investors.

Marlo Stanfield

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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 think that's pretty much almost certainly true. And it would be hard to argue otherwise because actually fully understanding where exactly Bitcoin and possibly other crypto actually fits in to the global economy in the long run is virtually impossible to really be confident about. Most people jump on the hype train, some try to do some actual analysis, but there are so many conditional factors like how it plays out politically and legally, that it's really difficult to just approach it from a quantitative perspective.

buwaytress

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Nothing really new nor surprising, though it might be useful to learn that the last Nobel Prize for Economics was awarded to a guy who proved that markets moved in directions that people failed to predict simply because every economic model and theory is based on logic.

And we, people, simply cannot help but be illogical. This isn't new in traditional markets and it's certainly no different in Bitcoin markets far from maturity.

rat03gopoh

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Yeah maybe, bitcoin prices are largely influenced by private investors. But still as if still controlled by the situation or external factors such as bad news and the volume of circulation in the market.

miyaka26

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Half right but he totally nailed it in some part that it is moved by emotion and moods, but overall you can look that it is all about the investors, holders, and traders, in short, the people behind the bitcoin community, it is moved by the emotions of the weak handed and newbie that wants a short time gains and rich without learning anything from this market.

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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

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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.

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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!

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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....

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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???

In general, all markets move due to emotions. What differs is the strength of these emotions.
And yes I would agree that the crypto space is very much driven by feelings, hype and doom.
Many market participants are completely new and never have traded or invested in any asset before.
So the market is packed with noobs, people who can easily be played with by the real experienced guys.
Just have a look at those twitter accounts following these 'Crypto OGs' or all those telegram chat groups. Noobs everywhere, who believe they can get rich over night and barely understand the basics of trading or investing at all. And just one simple fabricated news is enough to make people dump or fomo in. Cheesy

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Quote from: 1Referee on May 24, 2018, 10:59:59 AM

You don't have to be a professor to figure that out, it's just common sense because it applies to all emerging markets; they are speculative by nature, and thus an emotional roller coaster, and thus volatile.

True, but "emerging markets" usually refers to businesses within those markets, and thus when you use that phrase, it probably refers to stock markets. As I've said quite a few times before, stocks are very, very different than crypto. They do have some similarities, but the bottom line is that you can analyze stocks much easier than you can a cryptocurrency. With stocks, there's a business that's behind a given stock that has earnings, management, perhaps a dividend, and businesses are affected by general economic conditions as well.

What does bitcoin have? News and investor sentiment. That's it. Bitcoin doesn't have earnings and doesn't pay a dividend--what its price boils down to is simply supply and demand, and the supply is always known. So it's basically demand only, and that demand comes from rumors, news, and investor emotion. If anyone can think of any other factors, I'd love to hear them, because those are the only ones I can see.

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You don't have to be a professor to figure that out, it's just common sense because it applies to all emerging markets; they are speculative by nature, and thus an emotional roller coaster, and thus volatile.

I have said it before, large players play with people mentally to steer them into a certain direction, and that has been the case since the very beginning. This market is so small (still so today) that deep pockets can have the best time of their life in this market. If you add that there are now alternative ways (futures, options, etc) that will allow you to not only benefit once from manipulating the market, but two or three times simultaneously, manipulation suddenly becomes a whole lot more luctrative.

Holders don't have to deal with this volatility. If the market tanks, they can just buy up some coins and sit on them for years. Easy life.

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yeah really i could agree with it also but one thing i am missing and that is the actual study of the number of investors investing crypto without proper knowledge? I guess if you are investing in cryptocurrency you had already the perception on how bitcoin works and bitcoin has easy concept on it. As we all know the rule on how to earn in investing bitcoin and that is already discuss during school days with demand and supply or demand and price. There could be no reason for an individual to invest because of moods but because they got the idea about bitcoin.

Crypto Id

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It's not completely true. But you can take it like when a news appears to the market, like China is going to ban crypto currency or any other. With the fear of these kind of news people think btc it is going to dump and many of them starts to sale there btc and unfortunately the btc price goes down.

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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 partially true, there are many newcomers investing in bitcoin and it’s demand is getting more and more everyday. However although there are some factors that affect it’s price but bitcoin has its own economic system in cryptocurrency world. It is more like the world economics that the US dollar has the main stream of the economy, and if this currency goes up or down almost all the currency in the world is affected. Same in crypto, bitcoin is the main stream of crypto currency whatever it’s price it can affect to the other alts prices.

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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???

Topic: BTC price moved by emotion and mood! (Read 408 times)