Associate Professor at Central University of Finance and Economics, Director of the Economic Psychology Research Office in the Department of Sociology, Weng Xuedong believes that "investment activities are essentially about increasing the value of existing assets, but profits and losses hinge on a moment's thought, so the impact of investment psychology is indeed significant.

The price formation mechanism dictates that when supply exceeds demand, prices fall; when supply is less than demand, prices rise. In actual investments, the judgments of professional investors and non-professional investors about the market are inconsistent. The fluctuations in price are normal, while the psychological responses of investors to price changes will influence their decision-making. Due to the nature of virtual economies, prices can experience significant fluctuations around their value.

On the other hand, the intrinsic value of financial assets is difficult to estimate accurately, creating conditions for price speculation. When a stock is expected to perform well, many people buy that stock, and in this enthusiastic atmosphere, the market reflects the psychological changes of individuals, which also impacts investment decisions and encourages people to continuously raise their expectations. Although the fundamentals of publicly listed companies may not change significantly, different investors are in constant psychological competition. When investors are extremely pessimistic, stock prices tend to rise; when they are extremely optimistic, prices tend to reverse and fall. Some people will adapt to the market and make timely changes, while others will stubbornly hold onto their beliefs without adjustments. Since human investment behavior is not entirely rational,

mature investors need to not only grasp market rules but also understand the general psychological state of investors and their own psychological weaknesses, so that they can adopt different investment strategies tailored to individuals at different stages of investment." #加密市场回调