Why do people panic and sell their bitcoin when it falls in value?

[James Anderson]

why do people panic and sell their coins throw some light on this topic and share your opinion

[yhiaali3]

Not all people, only beginners and the faint-hearted panic and sell their coins when some bad news spreads, but the real investor does not care about all this news and declines.

This is what in market language is called emotional manipulation, where whales spread bad news to make these beginners and the weak panic and sell their coins for whales to buy at cheap prices.

This fear is transmitted like an infection through social media and everyone panics and starts what is called panic selling, only to discover after a while that they have fallen victim to manipulation.

[Azharul]

We know that various kinds of people are stay in this world. Than some people are related in the crypto currency world. But this related person are all did not knowledge in cryptocurrency market. Some are talk wrong news, they also spread this news. We also know that this panic news can not do disappointed this people who are aware of bitcoin and crypto currency world. So we should aware from social media and fallen of manpolution.

[Aanuoluwatofunmi]

why do people panic and sell their coins throw some light on this topic and share your opinion

The answer is very simple, they are afraid of loosing their investment especially when the market goes dip and there seems to be no hope for them, the next move you see them doing is to quickly place a market sell order on it and release the coin immediately, this usually happens as a result of fear and nothing more, they were being afraid of missing out under unnecessary demands, it's also common to newbies, they don't have the much understanding of the market volatility, so they sell at once.

[koang]

Even though Bitcoin is getting more attention from mainstream financial institutions, it is still a somewhat subversive concept.
Many people who invest here dream of being rich overnight.
They don't understand crypto and its volatility risks properly.
When prices fall sharply, they panic and vice versa (FOMO).

Crypto is made for everyone, but not everyone is capable and able to become a crypto investor.
A Crypto investor must see themselves as a radical or participating in the counterculture.

[bounceback]

Usually the beginner get panic for selling their bitcoin when it fall in values, the same with their habit buy or investing with bitcoin when on the top price and get panic moment if bitcoin crash suddenly. Its will be the greatest experienced for the beginner when selling bitcoin or altcoin assets with panic moment, will realize when bitcoin raising up again to higher price and face disappointed why have to sell before on lower price.

Unusual habit for all beginner or first time investing in cryptocurrency, I sure all investors will panic when first time investing in bitcoin then price suddenly drop significant and active with social media updated bad news about bitcoin.

[Don Pedro Dinero]

Usually the beginner get panic for selling their bitcoin when it fall in values, the same with their habit buy or investing with bitcoin when on the top price and get panic moment if bitcoin crash suddenly. Its will be the greatest experienced for the beginner when selling bitcoin or altcoin assets with panic moment, will realize when bitcoin raising up again to higher price and face disappointed why have to sell before on lower price.

This is what happens, although it is not exclusive to the crypto market, it happens in the stock market as well, and I imagine it happens in all types of markets, such as forex and others. They basically do the opposite of what should be done. The right thing to do is to buy when everyone else is selling and sell when everyone else is buying, but many retail investors get carried away by emotions and start buying when it is already too high and shit their pants when it goes down and sell.

[Hamza2424]

why do people panic and sell their coins throw some light on this topic and share your opinion

Panic sell and panic buy are the actions caused by Fear and Greed and I think this topic is already been covered here. Fear or greed You should read this topic, as it will enlighten you more. In my opinion, we panic sell when we get a news, which actually is not a real news, it is just a manipulated news and we panic sell or in other words we buy the news and results in lose.

And when we results in lose we call it panic sell. So in short terms, when we make quick moves like selling quickly under some stress or pressure without caring about the loss or profit we call that move a panic sell. Talking about why people panic sell, there would be hundred of reasons for that, they might have fell for a FOMO or FUD or they might not bear the pressure of market or they don't see there money going down in value etc.

[electronicash]

no one wants to lose money which the usual reaction when BTC dumps is sell.
for traders, its to hedge their money that's why those who sold will prefer to hold the USDT and probably buy back the BTC when the price correction is over.  they would look at the chart first if its really a good option to sell and wait.

if an individual just sell and turn his BTC to fiat then he really panicked and want out.

[Fivestar4everMVP]

why do people panic and sell their coins throw some light on this topic and share your opinion

Not everyone who sells their bitcoin, or any other coin per say, while the price is going down is panic selling, some are actually consciously selling in other to buy back when the price has significantly fallen, this will enable such individual own more coins than he or she initially owned.

I particularly do this at times with some of my altcoin holdings, and to me this is another type of trading, it makes no sense to hold a coin while you are watching the price going down, that is always an opportunity to own more of that coin if is truly one with lots of potentials, so, what I do is just sell it, and wait for the price to drop further, then I buy it back with all the funds, by doing this, if I had only like 1000 of that coin before, I may now have like 1200 or even more, depending on the price level I sold, and the price level I bought it back.

This is another trading and accumulation strategy, though not one without risk, for there are times the coin price will start going up just after you have sold and waiting to buy it back cheaper, you end up buying back at a higher price, losing some potion in the number of coins you previously held.

[ajiz138]

There are many reasons why people panic and sell during a downturn.
- With FUD news they will panic.
- When the whales sell like Gary recently sold his GBTC the weak will panic.
- They don't want to suffer big losses.
- Fear of their portfolio going down.
- Many factors cause them to panic and sell more.

Usually this weak person does not have in-depth knowledge about bitcoin or may not have experienced how the market is bearish.
I think people like this will not be strong for long investing in bitcoin they will sell at the time of loss only.

[Dr.Bitcoin_Strange]

I came across a topic on this forum some weeks ago where the OP was saying that nobody should invest in crypto because of FOMO because it is one reason that can cause some investors to sell their coins due to panic when the investment value begins to drop so drastically and they don't want to run into a severe loss.

Some people also sell off some of their important properties just to make sure they invest in Bitcoin and take profit when the price pumps, not knowing that the price can be very dynamic. If they beg to see a severe loss, they will just sell off.

With the two above examples being stated, what usually causes panic sells is a lack of proper knowledge about Bitcoin investment. If an individual lacks adequate knowledge of Bitcoin investment and goes ahead to invest in the wrong approach, they will definitely sell when the price gets volatile.

[Baofeng]

why do people panic and sell their coins throw some light on this topic and share your opinion

Mostly this is for inexperience investors, and obviously, that is normal behavior. I mean if you see your portfolio going down, then your first instinct is that you feel that you are losing money hence you want to stop it and sell. And that's why we always says that you should invest what you can afford to lose in crypto. So that if by chance it's going down, you will not panic and push the sell button.

But I guess it's a good learning experience though for this noobs. So that the next time, if the prices goes down again, you won't easily sold their bitcoin to those whales as they should known already that this is just another correction and sooner or later the price will go up and bounce back.

[UNIVERSE]

why do people panic and sell their coins throw some light on this topic and share your opinion

and this panic occurs very often every time there is a market correction or FUD that hits Bitcoin. Basically, panic is natural for everyone and will definitely influence our decisions. but when we are struggling in this crypto business we cannot keep up with constant self-panic. in the sense that we must be able to control panic based on the knowledge we have. Maybe this is the key because many people who own Bitcoin or buy Bitcoin simply follow trends or follow the people around them without first understanding how Bitcoin is and the market. So when the price of Bitcoin suddenly drops, they panic because they are afraid that their money will decrease day by day. even though basically if we haven't sold our BTC then our BTC amount will remain the same. Unfortunately, maybe these people don't think like that, they only think about the nominal fiat when converted.

[taufik123]

Obviously because those who sell during panic have no basic foundation on the trades or investments they make.
They just buy without thinking about what to do next.
There is no management on their investment, but if the price drops below the initial purchase price this will be a good opportunity to start buying back.

Panic will only give losses, especially if you sell at a low price or it can be said to be Cutloss.