Crypto investors still driven by FOMO and FUD, Kraken warns

According to one survey, more than 80% of crypto holders admit that emotional triggers like FOMO and FUD drive their investment decisions.

Kraken reveals a new survey of 1,248 crypto holders shows the significant impact of emotional decision-making; 84% of them agree to invest for fear of missing opportunities, and 81% are influenced by fear, uncertainty and doubt.

Crypto investors’ fears | Source: Kraken

The exchange notes that the results may suggest that “the vast majority of investors are allowing emotional triggers to drive their trading rather than rational strategy,” and that these emotions “typically arise from misunderstandings or a lack of confidence in the future potential of a particular asset.” cryptocurrency.”

The findings suggest that FOMO often leads investors to chase price increases, with 60% saying their primary concern is the fear of missing out on potential profits. By comparison, only 17% were afraid of missing out on price drops for potential bargains.

“Interestingly, 63% of crypto holders agreed that emotional decisions have a significant negative impact on their overall crypto portfolio.”

kraken

For many investors, social media appears to be blurring the line between market predictions and emotional triggers. The report states that 85 percent of those who rely on these resources experienced disruptions caused by sudden decisions.

Demographic analysis reveals that older investors (45-60 years old) think they missed out on crypto’s early gains but remain optimistic about future opportunities. 78% of this group believe they are missing out on significant profits, but 74% expect further growth in the market.

Gender differences also surfaced; Male participants were more likely to make FOMO-driven decisions and experience regret than females. For example, 70% of male respondents thought they were missing out on big gains, compared to 48% of women. Kraken noted that despite the disruptions, 68% of survey respondents are confident in crypto’s long-term growth, suggesting optimism remains alongside regret.