Differences in investor psychology revealed by cryptocurrency declines: the bright and shadow sides of buying opportunities

In periods when the cryptocurrency market experiences significant declines, a major divergence in investor behavior is emerging. While well-known investors like Robert Kiyosaki view market drops as a “buying opportunity,” many retail investors tend to sell off their holdings, leading to a clear split in how the market perceives cryptocurrency downturns.

In early February 2026, the market saw Bitcoin rapidly fall to around $67,600 (approximately 10.5 million yen), with gold and silver markets also undergoing substantial adjustments in tandem. Understanding which investment strategies work during this decline is becoming a key focus.

Why Wealthy Investors Act During Cryptocurrency Market Downturns

Kiyosaki posted on social media in early February, comparing the decline in financial markets to a “Walmart sale,” highlighting the differing reactions of the wealthy and ordinary investors. During typical sales, many consumers rush to buy, but in the context of falling cryptocurrencies, investor behavior tends to polarize.

While ordinary investors hurried to sell assets and secure cash, the wealthy—who have cash reserves—see this as an opportunity to expand their positions. This psychological gap significantly influences the market structure during crypto downturns.

In his post, Kiyosaki revealed, “I have cash ready, and now is the time to buy more,” encouraging readers to adopt the same stance. His long-term perspective suggests shifting funds into hard assets like gold, silver, and Bitcoin as a defense against inflation and currency devaluation.

Long-term Strategies of Investors Viewing It as a Buying Opportunity

Despite ongoing declines, institutional investors continue to actively purchase cryptocurrencies. Strategy Inc., a U.S.-based firm, reported buying an additional approximately 2,900 BTC (worth about $350 million) when Bitcoin dropped to around $87,000 (about 13.5 million yen).

This corporate behavior reflects a focus on long-term asset allocation rather than short-term market fluctuations. Strategy Inc. now holds over 712,000 BTC, accounting for more than 3% of the total circulating supply.

Continuing large-scale purchases during downturns is seen as laying the groundwork for the next cycle. When market sentiment becomes extremely bearish, contrarian investing strategies are increasingly favored among institutional investors.

Price Adjustments in Gold, Silver, and Bitcoin Markets and Underlying Factors

In early 2026, multiple asset classes entered correction phases simultaneously. Gold hit a high of over $5,000 per ounce at the end of January, then temporarily dropped as much as 9% on certain trading days. Silver experienced a rapid decline of about 33% within days of the end of January, and Bitcoin fell over 30% from its October 2025 peak of $126,000.

This synchronized decline is believed to stem from structural market factors beyond mere technical sell-offs. Reports indicate that approximately $111 billion was wiped out from the entire crypto market within 24 hours, with about $1.6 billion in forced liquidations, reflecting excessive leverage and intense market adjustments.

On-chain analysis firm CryptoQuant’s founder commented, “In an environment where selling pressure persists, the certainty of a market reversal is low,” highlighting the difficulty of technical recoveries.

Macroeconomic and Geopolitical Risks Accelerating Cryptocurrency Declines

The decline in cryptocurrencies is heavily influenced by macroeconomic and policy uncertainties. Rising geopolitical tensions between the U.S. and Europe, unclear monetary policy directions from the Federal Reserve, and delays in the comprehensive regulatory bill “CLARITY Act” have rapidly cooled market sentiment.

According to Fortune, regulatory uncertainty has reduced institutional risk appetite, accelerating short-term capital outflows. Meanwhile, gold and silver are being reevaluated as traditional safe assets, while skepticism about Bitcoin’s role as “digital gold” is also growing.

Market Outlook and Investor Decision-Making Criteria

The duration of the ongoing crypto decline will largely depend on U.S. monetary policy decisions, regulatory developments including the CLARITY Act, and central bank responses.

While prominent investors like Kiyosaki see the current dip as a buying opportunity, the structural uncertainties in the market mean caution remains essential until these issues are resolved. Whether this is a buying chance or a warning sign of further declines depends on each investor’s risk tolerance and information literacy.

The key message from the crypto downturn is the importance of understanding macroeconomic contexts and adopting long-term asset strategies. The market is shifting toward an era where assessing systemic risks and not just short-term price movements are crucial.