A recent survey of 1,248 cryptocurrency investors highlights the profound influence of emotions on investment decisions.
According to Kraken, 84% of respondents admitted to investing due to fear of missing out, while 81% were swayed by fear, uncertainty, and doubt. Kraken noted that the findings indicate a “significant majority of investors rely on emotional triggers rather than rational strategies when making trades.” The exchange further explained that these emotions often stem from misconceptions or a lack of confidence in the long-term prospects of specific cryptocurrencies.
The survey revealed that fear of missing out (FOMO) often drives investors to pursue price surges, with 60% identifying it as their primary concern. In contrast, only 17% expressed worry about missing price dips for potential buying opportunities.
According to Kraken, 63% of cryptocurrency investors admitted that emotional decision-making has significantly harmed their overall portfolio.
The report reveals that social media often blurs the line between market insights and emotional triggers for many investors, with 85% of those relying on these platforms reporting losses due to impulsive decisions. Demographic insights highlight that older investors (aged 45-60) often feel they missed out on crypto’s early gains, with 78% expressing regret over lost opportunities. However, 74% remain optimistic about future market growth.
Gender differences emerged, with male respondents more prone to FOMO-driven decisions and regret than females. While 70% of men felt they missed significant gains, only 48% of women shared this sentiment. Despite these setbacks, Kraken reports that 68% of participants remain optimistic about crypto’s long-term growth.
Meanwhile, Kraken has expanded its crypto services for Australian wholesale clients, offering access to cryptocurrency derivatives without directly holding the assets. The new service, launched under a registered financial services license, targets high-net-worth clients seeking advanced trading options. Jonathon Miller, Kraken’s general manager for Australia, stated that the product addresses clients’ evolving trading needs, enhancing their crypto journey.
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