Is Crypto the ultimate mirror of emotions like greed, fear and hope?

The cryptocurrency community witnessed one of its most volatile and challenging weeks in recent history. Bitcoin, for example, jumped from $100,000 last Saturday to more than $108,000 on Tuesday to hit a new record, but then plunged by $16,000 to a multi-week low of $92,000 after the Fed’s comments for the 2025

It has recovered about seven billion since then and is now back to $100,000. Aside from causing billions of dollars worth of liquidations from overleveraged traders, these enhanced fluctuations played on many people’s emotions, with many speculating whether the bull cycle is over.

The Fear and Greed Index, a metric that shows the overall sentiment of the crypto market towards BTC and altcoins, went from a deep “extreme greed” of 87 to just “greed” – 73 in a couple of days Such large differences only show the emotional side of the ever-volatile crypto market. Zooming out a bit, though, and it’s all about perspective.

Fear and greed 7 days. Source: Alternative.me The emotional part

It is obvious that we cannot exclude emotions from anything; otherwise we would not be human. Financial markets are no different, especially crypto, due to their substantial price fluctuations. One can’t shut down his emotions when he sees his portfolio go up and especially down by double digits in a day or two.

Bake CEO Julian Hosp emphasized the importance of emotions, but also perspective in a recent X post during the correction. He believes that the most vital part of people’s perspective is the direction and not the actual numbers.

“Here’s the craziness of crypto: It doesn’t matter if Bitcoin is at 30k, 60k or 100k, it’s all about direction. Does the price go up? Everyone is euphoric: 90k to 100k? Amazing. 108k to 100k? Disaster. Same price, totally different vibes.”

Let’s analyze what happens during these massive periods of green or red candles. As the price of BTC rises to a new all-time high, the euphoria begins. Do you remember what happened in 2021? Bitcoin jumped towards $70,000, and people turned their laser eyes on X (then Twitter) as it focused on its price reaching $100,000. And what happened next: BTC tanked and entered a year-long bear market.

Fear reigned supreme during that dark period, especially when previous industry giants like FTX and Celsius failed. The landscape changed once again in 2023 when BlackRock applied for a spot on Bitcoin ETFs, which essentially guaranteed that the US SEC would finally give these products the green light. The same thing happened when Donald Trump, who made numerous pro-crypto promises during his campaign, won the election and BTC started pumping.

The asset entered six-digit territory, and the aforementioned euphoria began to take off. People celebrated when it reached $100,000, but then it took advantage at $108,000 and went back to $100,000; this time, the general sentiment was not so optimistic, even. although just two years ago it seemed impossible to be at this level.

Mirror of emotions

Hosp concluded that the crypto market is a “mirror of emotions: greed, exploit, hope; it’s all about the feeling of where the market is headed.”

He noted that ultimate utility is the price itself, and rationality disappears when that price and trends “dominate over facts.” He added that the big green candles “generate more hype than any real number ever could.”

We know it’s impossible to leave emotions at the door when it comes to finance, especially crypto. However, one should step back during such violent corrections as this week and look at the big picture: Is your portfolio better now than it was a few months/years ago? If so, keep calm and keep doing what you’ve been doing. If not, you need to analyze what went wrong and how you can improve.

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