Herd Mentality in Bitcoin
by on 13/12/2025, 12:48:39 UTC
What is herd mentality?
https://www.verywellmind.com/how-herd-mentality-explains-our-behavior-7487018
How is this observed in bitcoin?
During bull cycles, people buy because others are buying. “They might know something I don’t so I’m just gonna follow them.”. Others also experience FOMO or fear of missing out when they see others buying.
During bear cycles, people sell because others are selling. “They might be right about how bitcoin will finally crash.”. People are driven by fear and the fear is validated by others selling.
It’s important to understand that bitcoin is volatile because people move in herds. One slight movement and the rest follows. How will you take advantage of bitcoin? Move AGAINST the herd. Buy when everyone else is selling. Sell when everyone is still buying.
https://www.verywellmind.com/how-herd-mentality-explains-our-behavior-7487018
Quote
Herd mentality, also known as mob mentality or crowd mentality, is a psychological phenomenon where people conform to the beliefs, behaviors, or attitudes of the majority in a group.
How is this observed in bitcoin?
During bull cycles, people buy because others are buying. “They might know something I don’t so I’m just gonna follow them.”. Others also experience FOMO or fear of missing out when they see others buying.
During bear cycles, people sell because others are selling. “They might be right about how bitcoin will finally crash.”. People are driven by fear and the fear is validated by others selling.
It’s important to understand that bitcoin is volatile because people move in herds. One slight movement and the rest follows. How will you take advantage of bitcoin? Move AGAINST the herd. Buy when everyone else is selling. Sell when everyone is still buying.