On Feb 5th 2026, there was a bloodbath in the markets. Bitcoin dumped a massive 14%, gold dumped 6%, and silver wiped nearly 13%, even stocks took a hit. So why is everything crashing?
Is the ‘Matrix’ out to get us? Or is the reason much closer to home?
In this article, we take a look at these vital questions and look at what entrepreneurs can do about them.
Here goes…
Why is Everything Crashing?
Of course, there are many factors that play into declining markets. Macroeconomic events, economic uncertainty, negative news events and even market ‘influence’, that some may call manipulation.
All the above play a part in the decline, and these factors can, in some cases, leave investors and entrepreneurs reeling, suffering huge losses.
However, there are some factors that are often overlooked that are deeply rooted inside all of us, and those elements are fear and greed.
Fear and Greed
On Feb 5th 2026, the CoinMarketCap Fear and Greed index hit the lowest value of ‘5’ ever since 2020 when markets took a tumble during COVID and the FTX scandal in 2022.
The Fear and Greed index is a representation of market sentiment running from ‘Extreme Fear’, low confidence, to ‘Extreme Greed’ or very high confidence.
The index highlights that human emotion plays a huge factor in how markets move. The psychological responses that we make as human beings impacts the behaviour of the crowds.
When fear is dominant people abandon rationality and fundamentals and act on their natural instinct to avoid pain and loss.
When greed is dominant, we pile on more risk, investing more, believing the gravy train will last forever.
Loss Aversion
As humans, we are wired for loss aversion. The emotion of loss feels much greater than the pleasure of gains.
This fear of loss can lead to panic selling and the avoidance of long-term thinking.
The fear of loss is often contagious. When one investor sells and pushes prices lower, others follow, causing a cascading effect.
In the age of algorithmic selling, margin calls and stop losses are hit, and a cascade to the bottom begins.
All this, not necessarily because the fundamentals have changed, but purely because perception and sentiment have shifted.
Fear enters quietly; it may be dismissed as a temporary setback. But once prices begin to fall, something primal often takes over.
Herd Mentality
We can’t help it, we see prices moving upwards, and we can’t help but jump on the bandwagon.
Likewise, if prices fall, we can’t help but follow everyone else and sell everything.
Herd behaviour is a very powerful force. People take cues from others.
This can sometimes lead to negative outcomes even if the fundamentals are essentially the same and the momentum is purely emotion led.
Prices will often overshoot the sentiment because, as humans, once sentiment turns negative, it’s hard for us to rein in the negative thinking.
Why Do Smart People Buy High and Sell Low?
This is a trap that many fall into. We all know that we should buy low and sell high. But in reality, most investors and entrepreneurs do the opposite.
We wait on the side-lines while the price of our chosen asset slowly rises and when it goes parabolic we can’t resist jumping in like everyone else.
Then, unfortunately the price crashes as the early adopters take profits.
Conversely, as the price of our chosen asset falls, we get increasingly uncomfortable and sell everything, and then, annoyingly the price reverses.
It’s important to understand that these behaviours are tied to our human psychology and have no bearing on our ‘smartness’. The markets are simply designed not to reward these behavioural traits.
What Entrepreneurs Must Know
We are living in uncertain times. It seems the very fabric of our society is being challenged and is in a state of flux.
As a result, there are moments when fear will take over, and rationality will go out the window.
With uncertainty comes not only danger, but also opportunity.
Savvy entrepreneurs should have a solid strategy for maintaining and building in challenging times.
Diversification – The recent bloodbath shows how diversification is key. Crypto suffered huge losses. While gold declined, but nearly not so much as silver.
Avoid placing all your bets in one particular asset.
Remember, diversification is not having ten different cryptos or different precious metals.
Consider having multiple asset classes because it’s impossible to predict which asset class will dump or pump the most.
Avoid ‘paper’ markets and deal with the actual asset itself.
Avoid using leverage in challenging times unless you are prepared to lose everything.
Read this article on how to avoid losing everything in crypto:
Keep Emotions in check – Have a plan and stick to it. Know in advance when you will sell and when you will buy. Avoid getting caught up in the hype or negative news cycle.
Understand your fear and greed and avoid herd mentality – Look at your emotions dispassionately before you make a decision.
Ensure every decision you make is your own. Do not blindly follow influencers or other gurus. No one knows for sure what will happen. Do your own research.
Think Long Term – What are your long term goals? Have the fundamentals changed? If not, you should consider sticking to your strategy.
Avoid Buying High and Selling Low – Do not act on bandwagons and hype.
If you want to buy into an asset and it’s rallying, consider waiting for a pullback.
Avoid going ‘all in’ on any asset and buy in small increments over time to average out your entry price. (Dollar Cost Averaging). This will help you avoid large losses should the price suddenly turn against you.
Stay Rational – In emotional times, it’s important to stay rational. For example, recently Bitcoin has seen highs of around $126,000, gold has surged to over $5000 an ounce and silver to over $120 an ounce. It’s inevitable that prices will fall back at some point.
Opportunities – Crashes and sudden downward price movements can offer opportunities to ‘buy cheap’. However, entrepreneurs should be careful not to go ‘all in’ and should buy in small increments (Dollar Cost Averaging), as the price could always move even lower.
Breaking the Cycle
Those who succeed do not completely eliminate emotion.
It’s important to have a strategy in place to limit the influence of our natural human instincts.
Buying low will feel lonely, hardly anyone else will see what you see and entering will feel uncomfortable.
Selling high will feel crazy, while everyone else is sure the price will pump euphorically to the moon.
This natural discomfort should not be seen as a flaw but as a signal.
Read this article on why entrepreneurs should consider Bitcoin, gold and silver:
Read this article on critical thinking:
Final Thoughts
In times of uncertainty markets can and do fall, sometimes overnight.
There are many factors that can cause this, including macroeconomic events, negative news stories and even market ‘influence’, that some may call manipulation.
However, entrepreneurs should be aware that fear and greed play an important role in how markets move.
Savvy entrepreneurs should be conscious of their own fear and greed and be aware of following the ‘herd mentality’.
Entrepreneurs who keep their emotions in check, stick to their plan and diversify should avoid the ‘buy high and sell low’ cycle and turn tumultuous times into opportunities.
Good luck!
***Disclaimer: This article is not financial advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
Pop Up World token has a growing ecosystem.
Pop Up World YouTube Reviews:
Review. Malik Atif – Hindi -Urdu
Review. Inside Crypto – Hindi – Urdu
Review. Convincing Crypto – English
The Pop Up World Token is designed specifically for entrepreneurs, to store value and to utilise on our platform Pop Up World. Join the revolution in financial freedom today.
Get the token on Cardano Decentralised Exchanges (DeXs), MuesliSwap, SundeSwap, Wingriders and Minswap. Or click the link here:
Pop Up World token has a growing ecosystem
Earn and help support the Pop Up World Blog and entrepreneurs worldwide by joining our Pop Up World Stakepool! Go to https://popupworld.co.uk/popupworldstaking
Thanks!
Pop Up World – Merchandise – Click here.
Virtual Heaven (Back To Reality) 2017 – (Graham Jules)
Read about the full ‘Alien Agenda’ in an exciting Sci-Fi – Illustrated Screenplay Format Book – Limited edition copies available on Amazon. Virtual Heaven (Back to Reality) – by Graham Jules.
***Disclaimer: This article is not financial advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
It starts with an idea. Pop Up World is a platform that helps start-ups and small businesses reach for the stars. No matter what size you are. Use our start-up guide Business Zero to Superhero, Design your Logo. Connect with investors via our Investor Connector. You can start a Website and Domain name. You can Search for and promote your Premises. You can promote your idea for free on our Pop Up World Ads site, you can even form a Limited Company You can also join us on our journey via the Pop Up World Token (PUW).
Pop Up World Blog 