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FUD (fear, uncertainty, doubt)

Negative information or rumor spread about an asset, sometimes to push the price down and sometimes a dismissive label for legitimate criticism.

FUD originally described deliberate disinformation. In crypto and meme-stock communities it has become a way to dismiss any bad news, which makes it a warning sign about the community rather than the news.

The useful question is whether the claim is verifiable, not who is spreading it.

Example: a report that an exchange is insolvent is called FUD by its supporters. Two weeks later the exchange halts withdrawals.

Related: confirmation-bias, hodl, capitulation, fomo

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

The mood around a market cycleA price path rising to a peak and falling to a trough, labelled with the feelings usually attached to each stage of the round trip.PRICETIMEOPTIMISMEXCITEMENTEUPHORIAANXIETYDENIALPANICCAPITULATIONDESPONDENCYHOPEOPTIMISM RETURNSMAXIMUM FINANCIAL RISKMAXIMUM FINANCIAL OPPORTUNITY
The mood around a market cycle. The same price path labelled with the feelings that tend to travel with it, from optimism up to euphoria and down through panic to despondency. Confidence is highest where the most money is already committed and prices are highest.

Educational only, not advice. Spotted an error? Post in Site Feedback.