All of life is comprised of patterns, including human behavior. Our patterns are the programs of our human operating system. Given a certain set of conditions, you have programs you run that dictate what actions you take.
When you translate this into the markets it looks like waves. Up & down, sideways motions that reveal the nature of our collective thinking pattern. The pattern is dominated by emotions, and two of the strongest ones are FEAR & GREED. These two emotions move in cycles. Greed is hope for more. Fear is fear of loss. the interaction between these two forces leads to behaviours which repeat over and over again in the markets and in real life.
In the case of Cardano we can see a similar pattern emerging .Because of heightened information asymmetry in the period just before an important release(staking or smart contracts), price development is particularly susceptible to excessive fear or greed. Uninformed investors observe sharp price changes just before the release and they attribute these to the informed trading of insiders. They then start to excessively trade in the same direction themselves and thus cause an overreaction
I hope you found interesting the idea
When you translate this into the markets it looks like waves. Up & down, sideways motions that reveal the nature of our collective thinking pattern. The pattern is dominated by emotions, and two of the strongest ones are FEAR & GREED. These two emotions move in cycles. Greed is hope for more. Fear is fear of loss. the interaction between these two forces leads to behaviours which repeat over and over again in the markets and in real life.
In the case of Cardano we can see a similar pattern emerging .Because of heightened information asymmetry in the period just before an important release(staking or smart contracts), price development is particularly susceptible to excessive fear or greed. Uninformed investors observe sharp price changes just before the release and they attribute these to the informed trading of insiders. They then start to excessively trade in the same direction themselves and thus cause an overreaction
I hope you found interesting the idea
King