Struggling to sleep? You’re not alone – How Bitcoin’s recent price crash is affecting other traders IRL
Summary
A recent significant drawdown in Bitcoin's price, dropping below $80,000, has caused widespread sleep disruption among retail traders, according to a CEX.io report. Nearly 70% of surveyed traders linked execution errors and poor trades directly to sleep deprivation caused by monitoring the market.
The survey revealed that 68% of respondents check prices almost every night after going to bed, with over half staying awake until at least 2 A.M. due to market moves. The primary psychological driver for this sleeplessness was the Fear of Missing Out (FOMO), cited by 59% of respondents, rather than fear of liquidation. Furthermore, sleep quality is strongly correlated with market conditions, with 64% sleeping better in bull markets versus only 10% in bear markets.
CEX.io suggests this insomnia is exacerbated by a shift in volatility timing. Data indicates the most violent price swings now cluster between 18:00 and 06:00 UTC, coinciding with when US institutional liquidity providers are offline. This reduced market depth during the Asian-Pacific crossover means smaller order flows cause larger moves, forcing retail traders in EMEA time zones to choose between sleep and active risk management during their rest periods.
(Source:CryptoSlate)