A recent Kraken survey reveals that emotional factors heavily influence cryptocurrency investment decisions, with over 80% of investors admitting their trades are driven by FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt).
The study, which polled 1,248 cryptocurrency holders, found that 84% of respondents made investment choices based on FOMO, while 81% acknowledged FUD impacting their decisions. According to Kraken, this suggests many investors are letting emotions, rather than rational analysis, guide their trading strategies.
The survey highlighted that 60% of investors primarily worry about missing potential profit opportunities, while only 17% are concerned about missing price dips for bargain purchases. Recent ADA surge demonstrates how FOMO can drive rapid price movements.
Social media emerged as a problematic influence, with 85% of investors who rely on these platforms reporting losses from impulsive trading decisions. The blurred line between market analysis and emotional triggers on social platforms appears to contribute to poor investment choices.
Age-based analysis revealed that older investors (45-60 years) harbor mixed feelings about cryptocurrency. While 78% believe they missed early profit opportunities, 74% maintain optimism about future market growth. Younger generations lead in cryptocurrency adoption and risk tolerance.
Gender differences were notable in the findings. Male investors showed a higher tendency toward FOMO-driven decisions, with 70% expressing regret about missed gains compared to 48% of female investors.
Despite these emotional challenges, the cryptocurrency market outlook remains positive among participants, with 68% expressing confidence in long-term growth potential.
The exchange warns that these emotional triggers often stem from misunderstandings or lack of confidence in specific cryptocurrencies' future potential, suggesting a need for more measured, research-based investment approaches.