Bottom Consensus Trap
Investors are cautioned about the “Bottom Consensus” trap, as true market bottoms typically occur when most expect prices to keep declining. According to Santiment, this phenomenon highlights a common psychological bias among investors. When the majority believes that prices will continue to fall, it often signals that a market bottom is near. This misjudgment can lead investors to miss potential recovery opportunities. Understanding market sentiment is crucial for making informed investment decisions, as it can help identify when a turnaround may occur. Investors should remain vigilant and avoid falling into the trap of consensus thinking, which can cloud judgment and lead to missed chances for profit.
This update was auto-syndicated to Bpaynews from real-time sources. It was normalized for clarity, SEO and Google News compatibility.
Last updated on November 15th, 2025 at 05:57 am
