According to Compounding Quality, contrast bias significantly affects trader psychology, leading investors to compare asset prices rather than objectively measure them (source: @QCompounding, June 2, 2025). For crypto traders, this bias can result in misjudging the value of altcoins or tokens after viewing higher-priced assets like Bitcoin or Ethereum. Recognizing contrast bias is crucial for avoiding common pitfalls in portfolio allocation and making sound entry and exit decisions in volatile markets. Staying aware of this bias can help traders evaluate cryptocurrencies based on intrinsic fundamentals rather than misleading price comparisons.