Investor Sentiment on the Cryptocurrency market

[TheUltraElite]

Emotions and market ups and downs are linked to the funds invested by investors. If investors invest heavily in the cryptocurrency market and the cryptocurrency market falls sharply, then investors will be crazy, but if it is a good trader, they will wait patiently. Poor people who invest in cryptocurrencies are often unable to sleep.

I would not call them investors like I have often said in the past. These people who cant handle their own assets in terms of risk management and capital diversification and not qualified to be labelled as investors. They are going to dig their own grave if they are going to panic and lose money and they deserve it.

These are also the same people who start calling crypto as a scam because they lost money due to their own mistakes because its easy to blame others for your mistakes. Those guys who stick around would realize the potential gains for patience.

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[houjinglong]

Investors and speculators usually have some differences in their mentality. Long-term investors may feel anxious when the market falls sharply. Short-term speculators are the most tragic. Their emotions are in sync with the cryptocurrency market. Bitcoin rises speculators excited, speculators with bitcoin falling will feel sad or even desperate.

[mapofgordious]

Investors and speculators usually have some differences in their mentality. Long-term investors may feel anxious when the market falls sharply. Short-term speculators are the most tragic. Their emotions are in sync with the cryptocurrency market. Bitcoin rises speculators excited, speculators with bitcoin falling will feel sad or even desperate.

This is right. Some might respond in a worst tone which often leads to the panic selling of the coins and others might be more business minded who would rather keep the coins until the value is recovered again.

[wuvdoll]

Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks

I believe these definition of investor sentiment also applicable for crypto investors. As of now I'm seeing people from both these classifications. When more people joining into one side, we can see that will be impacting into the conditions of crypto market. Basically I am into the side of willing to take risk as I am believing in to the futures of cryptos.

These are also the same people who start calling crypto as a scam because they lost money due to their own mistakes because its easy to blame others for your mistakes. Those guys who stick around would realize the potential gains for patience.

All the times we are having such people into this space but they could never get any chances to impact on the continuous progress of evaluation of this crypto space. I mean to say we should never bother them as they do not have any significance with respect to cryptos.

[coneing]

Investors and speculators usually have some differences in their mentality. Long-term investors may feel anxious when the market falls sharply. Short-term speculators are the most tragic. Their emotions are in sync with the cryptocurrency market. Bitcoin rises speculators excited, speculators with bitcoin falling will feel sad or even desperate.

Of course, they do have conflicts in their thoughts about the value of Bitcoin or any coin in the market and this is the reason many investors do not follow anyone like a speculator. There are many famous but even they do not give good authentic information.

[automaticmoney]

Even though the present crypto market is on depression mode we can see real development coins will pump eventually the prices and market sentiment will become strong in the coming day crypto market is also following the cycle of emotions same like centuries old stock market

[TheUltraElite]

All the times we are having such people into this space but they could never get any chances to impact on the continuous progress of evaluation of this crypto space. I mean to say we should never bother them as they do not have any significance with respect to cryptos.

They do have some effect on the newbies who are entering the market. They get scared of listening to their words because newbies are naive and I dont blame them because it does take sometime to get accustomed to the constant bombardment of FUD in this forum along with propaganda altcoin shills not to mention the youtube shills promoting bitconnect like scams and not being punished in any way.

Those people will continue to make money by using their unscrupulous methods but the suffering is the new people entering the space. Which is why I try to make them aware whenever I come in contact with them.

[GregH37]

Unfortunately, anywhere money is involved, sentiment is present and there is nothing to reverse that. The stock market, the fired market, the commodity market, every market in short, sentiments is there because that's the point where there are winners who are going home with profit while others are going to lose. In other to be on the winning side, then sentiment becomes an issue to put into consideration. That is the current position of the market in which the end of that is not in sight

It is getting less and less hopeful which is the trouble we have right now. People do not really trust bitcoin price anymore and even if the price shot 10% upwards today, no one would be really happy about it since it dropped so much. I doubt investors will be happy until they see a reversing of the trend and that could only happen with couple of weeks of green in bitcoin world.

If we can move towards over 4 thousand dollars until next week and go up a thousand dollars each week after that until the price hits seven thousand dollars or so the sentiment will be bad. If something major like that happens than people will flock back to bitcoin and just because of the sheer volume required for something like that we will see more and more people invest and carry it themselves.

[Bitfling]

Investor sentiment always influenced by news. If negative news come to market and investor believe on it, negative sentiment will bring drop the price and market value. I am think in any market, news hold important role in market sentiment

[Helpme_please]

Investor sentiment always influenced by news. If negative news come to market and investor believe on it, negative sentiment will bring drop the price and market value. I am think in any market, news hold important role in market sentiment

market movement , news influenced to market sentiment.so investors sentiment could not separated from price movement.if market crashing its give bad influence to psychology and sentiment.

[TheUltraElite]

It is getting less and less hopeful which is the trouble we have right now. People do not really trust bitcoin price anymore and even if the price shot 10% upwards today, no one would be really happy about it since it dropped so much.

If someone does not trust an asset in its future growth or development - why would they invest in it the first place? Either they were misinformed or someone roped them into a vicious cycle of event. For bitcoin that definitely not the case. Its fully transparent and immutable, irreversible currency.

I doubt investors will be happy until they see a reversing of the trend and that could only happen with couple of weeks of green in bitcoin world.

A couple of green weeks after 3-4months of bear run? Let alone stagnant periods before this? Seems plausible.

If we can move towards over 4 thousand dollars until next week and go up a thousand dollars each week after that until the price hits seven thousand dollars or so the sentiment will be bad. If something major like that happens than people will flock back to bitcoin and just because of the sheer volume required for something like that we will see more and more people invest and carry it themselves.

A carried over pumping would definitely pump the price to a bigger value. But the point is everyone is waiting for that spark which is going to ignite the mountain of gunpowder which is heaping up. Is it going to be the next ETF on February? Nobody knows for now.

[rikybrosh]

Hello everyone,

I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.

I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?

Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks

Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.

Best,

ycollin

News very influence cryptocurrency investor sentiment. When there are many good news that spread then bitcoin price will fall because usually good news indicates that the bitcoin is adoption grow faster and bad news indicates that bitcoin adoption will be slower. The other factor is the characteristics of bitcoin itself wgich is really good as medium of exchange, I think that's it.

[Menawi12]

Investor sentiment always influenced by news. If negative news come to market and investor believe on it, negative sentiment will bring drop the price and market value. I am think in any market, news hold important role in market sentiment

I am agree that news is affecting on investor sentiment. News can make investor panic and selling their coin and it will make price falling but also can make investor buying coin if the news is good for investor.

[efxtrader]

I think the sentiment factor in cryptocurrency market right now is bad news. If bad news or fake news come to market, most people panic and selling their coin at cheaper price. Its affecting others coin and market cap value.
Cryptocurrency market still vulnerable i think because in many country, cryptocurrency not regulated by government and many people still thinking cryptomarket is a buble

[wongdeso]

Investor sentiment always influenced by news. If negative news come to market and investor believe on it, negative sentiment will bring drop the price and market value. I am think in any market, news hold important role in market sentiment

I am agree that news is affecting on investor sentiment. News can make investor panic and selling their coin and it will make price falling but also can make investor buying coin if the news is good for investor.

This is what is happening now, the bad news is that the crypto price is still down, the good news is that for only a moment the price rises and falls again. The crypto market's sentiment is very fast and panic and many give up.

[bitgolden]

Unfortunately, anywhere money is involved, sentiment is present and there is nothing to reverse that. The stock market, the fired market, the commodity market, every market in short, sentiments is there because that's the point where there are winners who are going home with profit while others are going to lose. In other to be on the winning side, then sentiment becomes an issue to put into consideration. That is the current position of the market in which the end of that is not in sight

I think it is a good time to be involved in crypto right now. People who have been invested for years already cashed out, at least most of them. The people who got in last year when they heard about it already cashed out and ran away with the loss and just gave up.

Right now we are in a point where bitcoin is incredibly cheap and still known all around the world. Even the old people know what bitcoin is and heard about it, right now there is no going back to the times where bitcoin was unknown and the little people knew about it was that it was used on darknet to buy drugs or something.

Right now we are known a lot and we are known as a professional investment method like buying a stock and so forth. Hence I doubt there will be a better time in history after today that will be better to invest.

[Queensheart]

I think you should add one more thing is the discipline of an investor. Because the strategy and plan of the trader is more important than anything. If the investor does not have a strategy, he will not get anything.

Over here you need a strategy after strategy and this often makes it difficult for the people to handle the crypto panic. So a downward movement can be the reason of quitting the crypto market.

[gelinshidong]

The mood of ordinary investors is always crazy. The long-term downturn in the cryptocurrency market has made many investors feel negative. They are almost in a state of depression. Now investors are very sad. People in other industries will make fun of cryptocurrency investors.

[Shenzou]

Hello everyone,

I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.

I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?

Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks

Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.

Best,

ycollin

So a lot of people have came to this industry or i should say market with their hopes off getting rich and making money fast and easy considering how much their market has been growing fast through last tow years, and because of that there is a high percentage of investors today who are not driven by their knowledge of the market rather by their sentiment and their instinct of seeing the price going up and down, and because of that the minority is always affected by what the majority does so the market has been going down significantly, so in conclusion people who are driven by their sentiment always quit early and people who are driven by their knowledge stick to the end.

[TheUltraElite]

I am agree that news is affecting on investor sentiment. News can make investor panic and selling their coin and it will make price falling but also can make investor buying coin if the news is good for investor.

You people seem to have a bad idea about who is a proper investor and who is not. The real investors will make profits are the ones who have done research on a topic before investing in it. So a person who has done that for crypto would not be swayed by news.

News will be there, paid and manipulative to make people think wrongly. However people gain a resistance and stop following them because they understand the hidden motives.

Those who actually make millions never even check the news done by big media corporate. They have their beliefs and they run according to those.