FOMO (Fear of Missing Out) amplifies market volatility as investors panic-buy during rallies—BTC’s $62K spike (March 2025) saw $200M inflows in a day (CoinShares). X posts reveal panic and euphoria cycles. Impact: Exaggerates pumps and crashes. Avoidance: Set strict entry/exit rules (e.g., RSI < 70), use dollar-cost averaging, and mute hype—focus on fundamentals over emotion.
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Institutional custody partnerships show faith in digital assets. Risks lie in security breaches and counterparty dependence. This trend highlights risks and opportunities alike.
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Crypto whales, holding significant assets, can trigger sharp price swings through large transactions, impacting market sentiment. Their trades often signal trends, but low liquidity in smaller assets exacerbates volatility. Retail investors can track whale movements using on-chain data platforms like Glassnode to anticipate price shifts. Strategies include setting stop-losses, avoiding low-liquidity coins, and following whale alerts to align trades with market momentum while managing risks.
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