What role does investor psychology play in shaping Bitcoin prices during periods of extreme fear?
Pourquoi est-ce la bonne réponse?
This is correct because investor psychology reflects collective emotions like fear and greed that influence buying and selling decisions. When fear dominates, many investors sell, increasing supply and driving prices down. Conversely, when optimism returns, buying pressure rises and pushes prices up. Beginners should understand that sentiment can become a self‐fulfilling force, often creating price swings during extremes.
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