Every time bitcoin drops, many people often attribute it to major events like war, economic crisis...etc.
Human psychology always needs explanation by default??
They are always on the lookout for some major event to attribute to it as the cause.
Attaching it to an event gives them a sense of explanation for why bitcoin is down, making them less anxious.
Makes them feel like I'm in control, even though the connection between the event and bitcoin is worlds apart.
Next is the media guy, this is the guy who broadcasts the news. When an event happens, he will quickly link market fluctuations to the event to attract readers.
At this point the majority would follow suit, which made him feel like he was standing on a tall building and throwing water down.
And so it went on, day after day, year after year, he stood on the tall building and threw water down.
They will come up with headlines like âBitcoin drops due to war, bitcoin drops due to economic crisisâŠ.etc bla bla
It sounds reasonable but in reality, bitcoin fluctuations are only supply, demand and the psychology of bitcoin holders.
Regardless of the market, supply, demand and investor psychology are the root of market fluctuations, this is a realistic view.
The majority are just sleeping soundly and being sprinkled with salt and splashed with water by the media, but still think they are right!
After all, instead of attributing Bitcoin's price drop to events out there, look at the 3 factors SUPPLY - DEMAND and BITCOIN HODLERS.
The rest of the events out there are just short-term and then disappear. Like icebergs âïž floating on water, sooner or later they will melt!
