The current level of panic indeed reminds one of the extreme emotions during the
FTX collapse and the COVID-19 crash. But a word of caution-this may still be far from the end.
When retail investors feel that "it's already bad enough, it can't get worse," the market often just shows its fangs. The real extreme is not panic, but despair-when people are too afraid to buy the dip and don't even want to look at their accounts.
Right now, it's just fear; the true bottom is often accompanied by giving up. Don't be fooled by a temporary rebound; a more brutal emotional purge may still be ahead.