JOFF PARADISE EXAMINES
Fear vs. Greed
Bitcoin investor fear and greed are two emotions that drive the price of crypto, and often the deciding factor in how the market reacts. When greed is high the market will rally. When fear has control, the price will drop. These opposing forces are in constant battle with one another and can cause the market to be bullish or bearish – the same as in any trading environment. Too much greed in the market can cause huge consequences, result in a bubble, then followed by a strong shift to fear which causes a crash. There needs to be a balance of each for a healthy market, and crypto-enthusiasts prefer organic growth vs. the roller coaster ride most associate with the price of Bitcoin.
That said, there are profits to be made for those savvy enough to learn the ropes and trade the swings – but it takes time and effort, is very stressful, and definitely not for everyone.