Cryptocurrency Panic: Causes and Effects
The cryptocurrency market is known for its high volatility, with investors sometimes seeing huge gains in a short period of time, and other times losing a large portion of their investment. This volatility leads to cases of **panic** in the market, when investors face sharp declines or negative news. Crypto panic refers to a state of extreme panic or anxiety that leads investors to make rash decisions, such as randomly selling their digital assets to avoid further losses. This phenomenon has multiple causes and has a strong impact on the market. Here is a deeper look at the topic.