On June 5, 2024, at 1:00 PM, the $GMX cryptocurrency was valued at $40.60. By 9:00 PM the same day, it had experienced significant fluctuations, reaching a price of $43.
This 13% increase within a day and a 23% rise over the week highlight the inherent volatility in the cryptocurrency market.
Such volatility can have profound psychological effects on investors. Rapid price changes can trigger emotional responses, such as fear and greed, which can lead to irrational decision-making.
For instance, sharp increases might induce euphoria, causing investors to buy more out of FOMO (fear of missing out). Conversely, sudden drops can provoke panic selling, even if the long-term outlook remains positive.