@verify7

Large price drops often trigger fear and panic among investors, leading to a "sell-off" as people try to cut their losses. This reaction can cause further declines, reinforcing negative sentiment. On the flip side, for some investors, such drops present buying opportunities, especially if they believe the asset will recover. Market sentiment tends to shift toward caution or pessimism during such periods, and short-term traders may dominate the market, while long-term investors might hold or buy more. This cycle of fear and greed heavily influences crypto price volatility.

0 reply

0 recast

0 reaction