What are some recent examples of recency bias in the cryptocurrency market?

1 answers

• ShaahuMay 12, 2023 · 2 years ago
  At BYDFi, we have observed recency bias in the cryptocurrency market in various forms. For example, when a new token is listed on our platform, there is often a surge in trading volume and price volatility in the initial days. This can be attributed to recency bias, as traders and investors are eager to get in on the action and potentially profit from the new listing. However, as the initial excitement wears off, the price tends to stabilize and reflect the true value of the token. It's important for traders to be aware of this bias and exercise caution when trading newly listed tokens to avoid falling victim to short-term market fluctuations.
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