Although many members of the crypto community have rushed to social media to say that Bitcoin’s “FOMO” started last week’s high, Analysts disagree, saying that prices are likely to continue to rise and that the bull run for the asset has not even started.
The “FOMO” which means “fear of loss” – or something like “Fear of being outside“- is a famous term among investors and defines the mood of those who don’t want to miss an asset that is in an upward trend.
Investors suffering from “FOMO” usually enter a market that is already overvalued too late You can see the price of the asset drops after your order is placed.
With Bitcoin rising from $ 3,700 in March to $ 9,400 in late April, many members of the crypto community said “FOMO” is taking over the digital asset market.
Binance CEO himself – one of the world’s largest cryptocurrency exchanges – dCustomers entered “FOMO status” after the platform had a trading volume of nearly $ 16 billion last Thursday (30).
Changpeng Zhao said on twitter:
“Damn, $ 15.9 trillion in a couple of hours. It’s still going well. FOMO mode now. It took a while, lol. Slow but steady.”
In the following days, the entire digital asset market reached a high trading volume.
Last week Bitcoin alone reached over $ 70 billion in trading volume, double the amount it had at the beginning of the week.
Despite optimism, some analysts have said that “FOMO” has not yet started. A. Analyst explains why from this point of view.
For “Alex Classic Macro”, the low open interest on the trading platforms shows before the price correction on Friday (1) that the euphoria has not yet started:
“Despite the correction this morning, BTC’s move was very optimistic. Funding hardly increased, the overall OI did not increase sharply and Bitmex’s OI decreased. This speaks for the movement of spot buyers rather than excessive leverage. The decrease of 50% was to be welcomed after + 20% in 24 hours. “
According to “Alex Classic Macro”, the fact that the open positions are low means that this price movement was not caused by margin contracts.
This shows that this is an organic step in the Bitcoin market and that we can see a continuation of this upward trend.
Tom Lee, founder of cryptocurrency investment company Fundstrat, shares the same opinion. Said on social media that FOMO will take over the market when Bitcoin exceeds $ 10,000:
“Actually The goal of the chart is to say that the “real FOMO” is likely to start when Bitcoin exceeds $ 10,000, since this is a price level that is only 3% per day … mathematically, this corresponds to more than USD 4,500 in 2017. In retrospect, this price was a level that FOMO really shot up. “