The crypto market. We all know it. That’s how it’s all supposed to work, after all — the future of finance, powered by cold, hard algorithms and rational actors, correct? Wrong. The recent KookCapitalLLC tweet saga proves, yet again, that human emotion remains the most powerful, and often unpredictable, force in the digital asset space.

FOMO is a Powerful Drug

Let's be real. KookCapitalLLC may have the largest following. When they made their flippant tweet on 4/20/25, how many people took the time to look at the fundamentals before making a play? No. But then they noticed a big name they recognized that indicated easy money. Suddenly, the FOMO — fear of missing out — came crashing over me! Suddenly, Bitcoin jumped 3.5% to $72,120. Ethereum followed, rising 2.8% to $3,890. And SingularityNET (AGIX)? Up a cool 5.2% to $0.95.

We’re not referring to the smart money of institutional investors taking short term losses to make long term gains. These aren’t just institutions, we’re talking about retail investors, convinced by one tweet that they should invest with their life savings in super risky assets. SingularityNET’s trading volume spiked up by 45%, soaring up to 120 million tokens within two hours. This spectacular rise illustrates the extraordinary ability of herd mentality to move markets. It’s Black Friday…for your e-wallet.

Think about it. Remember the dot-com boom? Or the housing bubble?… History is filled with examples of irrational exuberance pushing markets to unsustainable highs. Crypto is no different. While the underlying technology is indeed revolutionary, the human psychology fueling its price action is ancient.

Algorithmic Overbought, Emotionally Oversold

Technical indicators screamed caution. Bitcoin’s RSI recently reached 71, indicating that it is in overbought territory. Ethereum’s Moving Average Convergence Divergence (MACD) was indicating a bullish crossover. Given the macro backdrop and history of false signals, this is a signal to greet with a good measure of skepticism.

Here's the unexpected connection: it's like seeing a "SALE" sign at a store. Your mind goes blank, you pick up things you know you’d never normally buy. Well, in crypto it’s exactly like that. Rather than just buying a new toaster, you’re buying a highly risky overvalued asset that really only relies on one tweet.

The market should have corrected itself. Instead, sentiment stayed strong enough to drive the price higher on this emotional momentum. The Pearson correlation coefficient between Bitcoin and AI tokens is .72, signifying a strong positive correlation. What this means is that as Bitcoin plummets, it raises all AI tokens, even those that are not good, up with it.

This isn't a critique of technical analysis. That’s all for now, besides this needed wake-up call to face its limitations. Algorithms may spot trends, they won’t predict how humans will act. They can never truly explain or account for the raw, unfiltered emotion that drives these market swings.

Influencer Responsibility: A Moral Imperative

KookCapitalLLC isn't solely to blame. This incident highlights a crucial issue: the responsibility of influencers. When you have a platform with that level of reach, the things you say really matter. A second, throwaway tweet can lead to life-altering changes in the real world, directly affecting the economic futures of millions of Americans.

  • Consider this scenario: Imagine someone, already struggling financially, seeing that tweet and thinking, "This is my chance!" They gamble their savings, hoping to get rich quick, only to see the price crash days later.
  • Now, ask yourself: Is that the kind of market we want? One where fortunes are made and lost based on the whims of social media?

It’s time for a grown-up discussion of influencer accountability. This isn’t censorship, this is ethics 101. It’s about understanding that to those who have been given much, much is expected.

The change affected the top 10 cryptocurrencies too as they experienced a drastic increase in 24-hour trading volumes by an average of 30%. At the same time, Ethereum’s active addresses increased by 15%, topping out at 500,000. These aren’t just numbers. After all, they are avatars for the real people, making the real decisions, in the real world, with suboptimal information, and plenty of emotional impulse.

We hope the crypto market will fulfill its promise, as a democratizing force, empowering individuals and revolutionizing finance. Only if we understand the power of emotion, and hold accountable those who shape it. Or else we’re simply stacking a house of cards, biding our time until the next damaging tweet comes along to blow the whole thing down.