FOMO
Fear Of Missing Out — anxiety-driven buying as an asset rises rapidly, often a sign of market overextension.
FOMO (Fear Of Missing Out) drives impulsive buying when prices are rising rapidly and investors feel they are being 'left behind'. It is a major contributor to crypto bull market bubbles: rising prices attract attention, attention drives more buying, buying drives more rises, until unsustainable.
On-chain and market-structure analysts use FOMO indicators — rapid retail inflows, record social media mentions, spikes in futures open interest — to identify overheated markets likely to correct.
FOMO trades made at market tops are a common source of substantial losses for retail investors. Buying into parabolic moves, particularly with leverage, is statistically poor risk/reward. The inverse discipline — 'be greedy when others are fearful' — is a core principle of contrarian investing.