The cryptocurrency community witnessed one of its most volatile and challenging weeks in recent history. Bitcoin, for example, went from $100,000 last Saturday to over $108,000 by Tuesday to reach a new record but then dumped by $16,000 to a multi-week low of $92,000 after the Fed\u2019s hawkish comments for 2025.<\/p>\n
It has recovered about seven grand since then and is now close to $100,000 once again. Aside from causing<\/a> billions of dollars worth of liquidations from over-leveraged traders, these enhanced fluctuations<\/a> played with a lot of people\u2019s emotions, with many speculating<\/a> whether the bull cycle has ended.<\/p>\n The Fear and Greed Index, a metric showing the overall sentiment in the crypto market toward BTC and the altcoins, went from deep \u2018extreme greed\u2019 of 87 down to just \u2018greed\u2019 \u2013 73 in a couple of days. Such large differences only go to show the emotional part of the ever-volatile crypto market. Zooming out a bit, though, and it\u2019s about perspective.<\/p>\n <\/a>Fear and Greed 7-Day. Source: Alternative.me<\/p>\n It\u2019s obvious that we cannot exclude emotions from anything; otherwise, we wouldn\u2019t be humans. The financial markets are no different, especially crypto, due to its substantial price fluctuations. One cannot just shut down their emotions when they see their portfolio going up and especially down by double-digits within a day or two.<\/p>\n Julian Hosp, Bake\u2019s CEO, outlined<\/a> the importance of emotions but also perspective in a recent X post during the correction. He believes the most vital part of people\u2019s perspective is the direction and not the actual numbers.<\/p>\n \u201cHere\u2019s the crazy thing about crypto: It doesn\u2019t matter if Bitcoin is at 30k, 60k, or 100k \u2013 it\u2019s all about the direction. Price goes up? Everyone\u2019s euphoric: 90k to 100k? Amazing. 108k to 100k? Disaster. Same price, totally different vibes.\u201d<\/p>\n Let\u2019s analyze what happens during those massive green or red candle periods. When BTC\u2019s price surges toward a new all-time high, euphoria kicks in. Remember what happened back in 2021? Bitcoin jumped toward $70,000, and people put laser eyes<\/a> on X (then Twitter) as they were focused on its price going to $100,000. And what happened next \u2013 BTC dumped and went into a year-long bear market.<\/p>\n Fear dominated during that dark period, especially when previous industry giants like FTX and Celsius went bust. The landscape changed once again in 2023 when BlackRock filed<\/a> for a spot in Bitcoin ETF, which essentially guaranteed that the US SEC would finally greenlight such products. The same happened when Donald Trump, who made numerous pro-crypto promises<\/a> during his campaign, won the elections, and BTC started pumping.<\/p>\n The asset indeed went into six-digit territory, and the aforementioned euphoria started to kick in. People celebrated when it hit $100,000, but it then tapped $108,000 and went back to $100,000 \u2013 this time, the overall sentiment was not all that bullish, even though it seemed impossible just two years ago to be at this level.<\/p>\n Hosp concluded that the crypto market is a \u201cmirror of emotions: greed, feat, hope \u2013 it\u2019s all about the feeling of where the market is heading.\u201d<\/p>\n He noted that the ultimate utility is the price itself, and rationality goes away when that price and trends \u201cdominate over facts.\u201d He added that large green candles \u201cgenerate more hype than any actual numbers ever could.\u201d<\/p>\n We know it\u2019s impossible to leave emotions at the door when dealing with finances, especially crypto. However, one should zoom out during such violent corrections as the one from this week and look at the bigger picture \u2013 is your portfolio better now than it was a few months\/years ago? If yes, then keep calm and keep doing what you have been doing. If not, then you need to analyze what went wrong and how you can improve.<\/p>\n The post Is Crypto the Ultimate Mirror of Emotions Like Greed, Fear, and Hope?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The cryptocurrency community witnessed one of its most volatile and challenging weeks in recent history. Bitcoin, for example, went from $100,000 last Saturday to over $108,000 by Tuesday to reach a new record but then dumped by $16,000 to a multi-week low of $92,000 after the Fed\u2019s hawkish comments for 2025. It has recovered about […]<\/p>\n","protected":false},"author":0,"featured_media":30208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-30207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30207"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30207"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/30208"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The Emotional Part<\/h2>\n
Mirror of Emotions<\/h2>\n
![<\/a>Fear and Greed 7-Day. Source: Alternative.me<\/p>\nThe Emotional Part<\/h2>\nIt\u2019s obvious that we cannot exclude emotions from anything; otherwise, we wouldn\u2019t be humans. The financial markets are no different, especially crypto, due to its substantial price fluctuations. One cannot just shut down their emotions when they see their portfolio going up and especially down by double-digits within a day or two.<\/p>\nJulian Hosp, Bake\u2019s CEO, outlined<\/a> the importance of emotions but also perspective in a recent X post during the correction. He believes the most vital part of people\u2019s perspective is the direction and not the actual numbers.<\/p>\n\u201cHere\u2019s the crazy thing about crypto: It doesn\u2019t matter if Bitcoin is at 30k, 60k, or 100k \u2013 it\u2019s all about the direction. Price goes up? Everyone\u2019s euphoric: 90k to 100k? Amazing. 108k to 100k? Disaster. Same price, totally different vibes.\u201d<\/p>\nLet\u2019s analyze what happens during those massive green or red candle periods. When BTC\u2019s price surges toward a new all-time high, euphoria kicks in. Remember what happened back in 2021? Bitcoin jumped toward $70,000, and people put laser eyes<\/a> on X (then Twitter) as they were focused on its price going to $100,000. And what happened next \u2013 BTC dumped and went into a year-long bear market.<\/p>\nFear dominated during that dark period, especially when previous industry giants like FTX and Celsius went bust. The landscape changed once again in 2023 when BlackRock filed<\/a> for a spot in Bitcoin ETF, which essentially guaranteed that the US SEC would finally greenlight such products. The same happened when Donald Trump, who made numerous pro-crypto promises<\/a> during his campaign, won the elections, and BTC started pumping.<\/p>\nThe asset indeed went into six-digit territory, and the aforementioned euphoria started to kick in. People celebrated when it hit $100,000, but it then tapped $108,000 and went back to $100,000 \u2013 this time, the overall sentiment was not all that bullish, even though it seemed impossible just two years ago to be at this level.<\/p>\nMirror of Emotions<\/h2>\nHosp concluded that the crypto market is a \u201cmirror of emotions: greed, feat, hope \u2013 it\u2019s all about the feeling of where the market is heading.\u201d<\/p>\nHe noted that the ultimate utility is the price itself, and rationality goes away when that price and trends \u201cdominate over facts.\u201d He added that large green candles \u201cgenerate more hype than any actual numbers ever could.\u201d<\/p>\nWe know it\u2019s impossible to leave emotions at the door when dealing with finances, especially crypto. However, one should zoom out during such violent corrections as the one from this week and look at the bigger picture \u2013 is your portfolio better now than it was a few months\/years ago? If yes, then keep calm and keep doing what you have been doing. If not, then you need to analyze what went wrong and how you can improve.<\/p>\nThe post Is Crypto the Ultimate Mirror of Emotions Like Greed, Fear, and Hope?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"The cryptocurrency community witnessed one of its most volatile and challenging weeks in recent history. Bitcoin, for example, went from $100,000 last Saturday to over $108,000 by Tuesday to reach a new record but then dumped by $16,000 to a multi-week low of $92,000 after the Fed\u2019s hawkish comments for 2025. It has recovered about […]<\/p>\n","protected":false},"author":0,"featured_media":30208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-30207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30207"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30207"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/30207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/30208"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}](\"https:\/\/cryptopotato.com\/wp-content\/uploads\/2024\/12\/Screenshot-2024-12-21-094307.png\"){kind=link}