@chiral

Large price fluctuations often trigger emotional responses like fear, greed, and uncertainty in investors. During rapid price increases, FOMO (Fear of Missing Out) can drive people to make impulsive purchases, hoping to ride the wave. Conversely, sharp declines can lead to panic selling as investors attempt to cut losses. These swings often lead to a short-term, reactive approach to trading rather than a disciplined, long-term strategy. Over time, extreme volatility can create a more cautious or skeptical mindset, potentially causing investors to hesitate or sit on the sidelines until the market stabilizes.

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