As the crypto market anticipated a bullish run in 2025, a new study has revealed how it gets affected by emotion rather than facts. The fear of missing out or FOMO is the driving force behind crypto investors’ trading activity, according to a study done by Kraken.
As per the study, 8 out of 10 crypto investors make investment choices driven by FOMO. The US-based crypto exchange’s study further showed the extent, as 58% of traders regularly acted this way while 81% said they made investment decisions in fear of uncertainty and doubt, which is in line with the prediction of a crypto market crash when Trump resumes office on January 20.
"These feelings typically arise from misunderstandings or a lack of confidence in the future potential of a particular cryptocurrency," according to the Kraken study.
According to the study, 84% of crypto investors are driven by FOMO, which is concerning as emotional decision-making is dominating proper investment strategy in the crypto landscape.
The Emerging FOMO Trends
Let's dive into the details of the emerging FOMO trends that are driving the market crazy.
FOMO Over Buying the Dip
The study reveals that 60% of cryptocurrency holders are primarily concerned with missing out on significant price surges that could lead to profitable exits. This fear has become so pervasive that 58% of respondents reported "frequently" basing their investment decisions on this anxiety, while an additional 26% acknowledged doing so "occasionally."
Surprisingly, only 17% of crypto investors expressed primary concern about missing significant price dips that could present buying opportunities. This asymmetry suggests a notable bias in the market, where investors appear more focused on chasing potential gains rather than strategically accumulating assets during market downturns.
The Gender Gap in Crypto FOMO
One of the study's most revealing findings highlights significant gender differences in emotional trading patterns. Male investors showed a markedly higher tendency toward FOMO-driven decisions, with 66% reporting frequent investment decisions based on fear of missing price surges. In contrast, only 42% of female investors reported similar behavior.
The disparity extends further, with 70% of male crypto holders expressing strong feelings about missing out on crypto's biggest gains, compared to 48% of their female counterparts. This suggests that male investors might be more susceptible to impulsive trading decisions and subsequent regret.
Age Demographics and Market Optimism
The research presents fascinating insights across age groups, particularly among investors aged 45-60. This demographic showed the highest levels of both regret and optimism, with 78% feeling they missed early crypto gains while 75% maintain strong belief in future opportunities.
Crypto Portfolio Getting Effected
Perhaps most tellingly, 63% of crypto holders acknowledged that emotional decisions had significantly negative impacts on their overall crypto portfolio performance. This admission underscores the real-world consequences of letting market sentiment override strategic planning in investment decisions.
Social Media Driving FOMO
The study identified a strong correlation between information sources and FOMO-driven trading. 85% of investors who rely on social media for trading information reported that emotional decisions negatively impacted their portfolios. Social media emerged as the most popular information source, with 61% of investors using these platforms to identify trading opportunities.
Positive Outlook Despite the FOMO Trends
Despite the prevalence of FOMO-driven trading, the market maintains a notably optimistic outlook. 68% of respondents strongly believe significant gains are still to come in the crypto market, even though 64% feel they missed out on the biggest gains of the past.
Data from the study underlined why crypto investors need to follow a more disciplined and strategy-based approach to crypto trading. It further suggests methods like dollar-cost averaging and automated trading systems to reduce the impact of emotional decision-making.
The findings serve as a crucial reminder that while cryptocurrency markets offer significant opportunities, success may depend more on controlling emotional responses than on market timing or technical analysis alone.