Crypto investors still driven by FOMO and FUD, Kraken warns

Over 80% of crypto holders admit emotional triggers like FOMO and FUD drive their investment decisions, a survey reveals. A new survey of 1,248 crypto holders shows the significant impact of emotional decision-making, with 84% admitting to making investments based on fear of missing out and 81% influenced by fear, uncertainty, and doubt , Kraken reveals . Crypto investors’ fears | Source: Kraken The exchange says the results could suggest that a “large majority of investors are allowing emotional triggers to guide their trades rather than rational strategy,” adding further that these feelings “typically arise from misunderstandings or a lack of confidence in the future potential of a particular cryptocurrency.” The findings suggest FOMO frequently leads investors to chase price surges, with 60% citing fear of missing out on potential profits as their primary concern. Comparatively, only 17% feared missing price dips for potential bargains. “Interestingly, 63% of crypto holders acknowledged that emotional decisions have had a significant negative impact on their overall crypto portfolio.” Kraken You might also like: Justin Sun pledges to create $1b fund to ‘combat FUD’ after facing $280m in losses For many investors, social media appears to blur the line between market insights and emotional triggers. Among those who rely on these sources, 85% report setbacks tied to impulsive decisions, the report reads. Demographic insights reveal older investors (45-60 years) feel they missed out on crypto’s early gains but remain optimistic about future opportunities. Among this group, 78% strongly believe they missed significant profits, yet 74% expect further growth in the market. Gender differences also surfaced, with male respondents more likely than females to make FOMO-driven decisions and experience regret. For example, 70% of male participants felt they missed out on major gains, compared to 48% of females. Despite setbacks, 68% of respondents remain confident in crypto’s long-term growth, suggesting optimism persists alongside regret, Kraken notes. Read more: Kraken to close NFT marketplace by February 2025