- Over 80% of crypto holders base investment decisions on FUD (81%) or FOMO (84%), with younger investors feeling they’ve missed major gains, while older investors remain optimistic.
- Men are more susceptible to FOMO, with a 24% gap between genders, and social media is identified as a major source of emotional influence in investment choices.
What happened: 0ver 80% of crypto holders driven by FUD and FOMO
A Kraken survey has found that over 80% of crypto holders have made investment decisions based on FUD (Fear, Uncertainty, and Doubt) or FOMO (Fear of Missing Out). With Bitcoin recently surpassing $100,000, the survey underscores how emotional impulses—particularly the anxiety of missing out on gains—shape investment choices in the crypto market. The survey also highlights a demographic divide, showing that younger investors (18-29) feel they’ve missed out on crypto’s biggest gains, while older investors (60+) remain optimistic about future growth. Additionally, men appear more prone to FOMO, with a significant gender gap in decision-making. Kraken also pointed to social media as a major source of both market insights and emotional pressure, advising investors to take a more rational, critical approach to avoid emotional-driven decisions in an unpredictable market.
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Why it is important
VKraken’s findings highlight the important role that emotions play in the decision-making process of cryptocurrency investors. With more than 80% of cryptocurrency holders admitting that they make investment choices based on FUD (Fear, uncertainty and doubt) or FOMO (Fear of missing out), the survey reveals how market sentiment and psychological stress can outweigh rational analysis in this volatile market.
The study is especially timely as Bitcoin recently surpassed $100,000, fueling market optimism and emotional investment behavior. These data highlight the need for financial education and a disciplined approach to investing, as impulsive decisions driven by hype or fear can lead to significant financial losses.
In addition, the survey provides insight into demographic trends, showing that younger investors feel they are missing out on significant gains, while older investors remain optimistic about future opportunities. Gender differences in FOMO susceptibility, with men disproportionately affected, further highlight the multiple factors that influence investment behavior.
Overall, the study highlights the importance of critical thinking and emotional control in navigating the unpredictable crypto market.
