Panic is caused by rumors, market crashes are caused by numbers — why FUD is not the main enemy of the crypto industry

Based on the headlines from recent days, the crypto market simply had no chance. As if in concert, news feeds bombarded investors’ wallets with a wave of frightening stories about founders who are either connected to dubious figures, hate their own projects, or are buying gold instead of developing technology. Against this backdrop of FUD hurricane, BTC drops by -0.89%, ETH slides by -1.52%, and BNB loses -2.13% of its value. It would seem, here it is — the reason for the decline.

But this is only a symptom, not a diagnosis.

Nine fear stories that filled social media

Recall what exactly the market was discussing:

Bitcoin is accused of founder ties to high-profile names. Ethereum is criticized for alleged negative attitudes of developers toward their own network. Tether supposedly transfers reserves into gold instead of digital assets. BNB is accused of “destroying the industry.” XRP is suspected of systematic leaks of billions by co-owners. USDC faced reports of negative results after going public. Solana is criticized for the creator allegedly not using his own platform. TRON is reproached for shady financial schemes. Dogecoin is described as a dead project — supposedly, the creator sold everything ten years ago.

Each story alone sounds frightening. Together, they create a picture of an industry hanging on a handshake.

When rumors meet market reality

However, the history of the crypto market has repeatedly proven: panic on social media and the actual reasons for price drops are different things.

The market is falling not because Twitter is exploding with FUD. It’s falling because:

Liquidity is evaporating. When major players start closing positions, trading volumes decrease, and prices slide down under their own weight.

Macro economy speaks its part. Traditional asset bets, inflation expectations, movements in stock markets — all influence where investments flow.

Risk-off takes over the sector. When investors start fleeing risky assets, cryptocurrencies are among the first to lose appeal, regardless of project quality.

Meanwhile, current quotes show stabilization: Bitcoin stays around $67,490, Ethereum trades at about $1,950, Solana hovers around $83.74. These prices are the result of supply and demand dynamics, not Twitter drama.

History shows: the peak of negativity is the start of growth

What’s interesting is that every bear market in crypto history ended the same way. When negativity peaks, when news feeds seem hopeless, when even believers in the technology start doubting — that’s when the foundation for the next cycle is laid.

FUD doesn’t disappear at the rebound. It continues to exist but ceases to be the main price-driving factor. In place of panic, cold analysis comes: which of these rumors are real problems, and which are just noise? Which projects have fundamentals, and which were sustained by speculation?

The question isn’t whether there are problems in the industry. They exist. The question is whether you can separate signal from noise, information from manipulation, temporary decline from structural collapse.

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