What causes an increase in cognitive biases in the crypto markets?
Crypto volatility
Crypto markets are known for being volatile and uncertain. As a result, there is a higher likelihood of cognitive biases developing in such an environment.
Emerging MarketThe nascency of the market and the lack of substantial historical data compared to other well-established markets hinders the decision-making process.
Misinformation
This makes it challenging for investors to distinguish between true and false news, exacerbating cognitive biases.