FOMO AND FUD ARE MEASURABLY CHANGING HOW CRYPTO HOLDERS TRADE
According to a Kraken survey published in December 2024, 63 percent of crypto holders reported that FOMO or FUD had negatively affected their trading strategy. That is not a fringe number. It means the majority of people holding crypto today have made at least one decision driven by emotion rather than analysis.
The two forces pull in opposite directions. FOMO, fear of missing out, pushes buying after a price has already moved, often triggered by a token climbing sharply while social feeds fill with screenshots. FUD, fear, uncertainty, and doubt, pushes selling based on unverified or exaggerated bad news, before anyone has confirmed whether it is true.
Crypto markets amplify both because there is no closing bell, participants are often pseudonymous, and platforms like Telegram, X, and Reddit spread sentiment faster than most people can fact check it. On top of that, leveraged positions can turn an emotional price move into a liquidation cascade within hours, since on chain transactions settle instantly and cannot be reversed.
The Fear and Greed index, scoring sentiment from 0 to 100, is one tool holders use to see this pattern from the outside rather than living inside it.
Read the full piece on managing these signals: https://blog.ston.fi/fomo-and-fud-explained/
According to a Kraken survey published in December 2024, 63 percent of crypto holders reported that FOMO or FUD had negatively affected their trading strategy. That is not a fringe number. It means the majority of people holding crypto today have made at least one decision driven by emotion rather than analysis.
The two forces pull in opposite directions. FOMO, fear of missing out, pushes buying after a price has already moved, often triggered by a token climbing sharply while social feeds fill with screenshots. FUD, fear, uncertainty, and doubt, pushes selling based on unverified or exaggerated bad news, before anyone has confirmed whether it is true.
Crypto markets amplify both because there is no closing bell, participants are often pseudonymous, and platforms like Telegram, X, and Reddit spread sentiment faster than most people can fact check it. On top of that, leveraged positions can turn an emotional price move into a liquidation cascade within hours, since on chain transactions settle instantly and cannot be reversed.
The Fear and Greed index, scoring sentiment from 0 to 100, is one tool holders use to see this pattern from the outside rather than living inside it.
Read the full piece on managing these signals: https://blog.ston.fi/fomo-and-fud-explained/