Why Investors Buy the Dip: Hope, Optimism, and the Psychology of Volatility

The cryptocurrency market is notorious for its wild swings in price, leaving even seasoned investors feeling like they’re standing on a seesaw that keeps tipping. Prices soar to dizzying heights one moment and plummet into the abyss of red the next. Yet, amidst this chaos, a phenomenon persists: ‘hopeium’. This psychological effect drives investors to buy dips, even when logic suggests otherwise, creating a powerful loop that fuels further investment during market downturns.