"Is fear a buy signal?…Institutional investors actually buy during a crash"

Recently, amid widespread fear among investors following a sudden crash in the digital asset (cryptocurrency) market, some have argued that this should instead be seen as a buying signal.

On the 14th (Korean time), according to crypto-focused media Cointelegraph, Brian Q, an analyst at the on-chain analysis platform Santiment, said, "When the market plunged after President Donald Trump's announcement of 100% tariffs on China, institutional investors and so-called 'smart investors' actually bought Bitcoin (BTC) and altcoins."

He added, "Retail investor sentiment often explodes just before Bitcoin and altcoin prices move in the opposite direction," and "when fear, uncertainty, and doubt (FUD) reaches an extreme, it is actually a buy signal."

Specifically, Brian Q explained that investor sentiment has reached 'fear' about four times this year. He said, "Fear spread in the market with the first global tariff announcement in April, rising tensions in the Middle East in June, concerns about a rate cut by the U.S. Federal Reserve in August, and the announcement of tariffs on China in October," and "each time retail investors wavered, institutional investors bought."

Brian Q said, "After last Friday's plunge, when President Trump withdrew the tariff plan and Treasury Secretary Scott Bessent explained that 'there was a misunderstanding,' investors quickly returned," and evaluated that "emotional trading driven by political news is dominating short-term market movements more than ever."