Robinhood retailers have seen rallies increasing due to the “fear of loss” or FOMO associated with certain promotions. The most recent beneficiary was the share price of the renowned camera manufacturer Kodak (KODK), whose shares rose from USD 2 to USD 60 in one day.
Given the current climate of economic uncertainty and “infinite QE” If optimism about risky assets flows into Bitcoin, chances are for a similar recovery in the BTC price As some analysts are currently predicting, they are certainly increasing.
In addition, strategists expect general investor sentiment to recover after the Federal Reserve’s FOMC meeting on July 29, which is good news for Bitcoin bulls given the recent correlation between Bitcoin and Bitcoin.
Bitcoin investor responds to the Kodak rally. Source: Jason Williams
Why Kodak has had a parabolic rally and why some BTC investors expect the same
July 28th, United States President Donald Trump said Kodak will receive a $ 765 million loan to create Kodak Pharmaceuticals. Kodak has been manufacturing materials and chemicals for some time.
Kodak withdrew from the camera industry in 2013, and President Trump’s message further consolidated Kodak’s presence in the pharmaceutical industry. This happened after the government decided to reduce the US’s dependence on pharmaceutical manufacturers in foreign markets.
As a result, Kodak saw a recovery that even surpassed Bitcoin’s parabolic upward trend for 2017. In a single trading session, Eastman Kodak Company shares rose 318%. He broke 20 circuit breakers and marketed $ 1.45 billion. At its peak, Kodak rose 2.198% in 2 days.
Return on KODK stock price 2017-2020. Source: trade view
Given the KODK price hike from $ 2 to $ 60 A similar recovery would result in BTC prices well above the six-digit rangeSome well-known industry experts asked for some $ 100,000 price forecasts for 2020.
The KODK and Bitcoin price also showed some correlation together with other cryptocurrencies in early 2018. When Bitcoin returned to historic highs of nearly $ 20,000, the KODK rose from $ 3 to over $ 13 over the same period.
Meanwhile, Robintrack.net reports that more than 100,000 Robinhood users now own Kodak shares. Before the announcement, fewer than 10,000 users had invested in KODK.
Robinhood users who had FOMO on Kodak. Source: Robintrack.net
Kodak and Bitcoin have no obvious similarities. However, the overnight recovery of stocks and the sudden influx of capital from private investors show how quickly the trend could reverse.
It also shows how favorable market conditions affect stocks and alternative assets. The Fed said in the FOMC’s official statement that it would do anything to revive economic growth.
Market FOMO comes at a good time for BTC
Bitcoin’s price has risen from $ 3,600 to over $ 11,400 in five months. The rally will take place after the block reward halved on May 11th, which takes place every four years.
As Cointelegraph reported on Wednesday Top-class investors are enthusiastic about the current upward trend of Bitcoin. Cameron Winklevoss, the billionaire founder of Gemini’s cryptocurrency exchange, said Bitcoin’s next rally was “dramatically different.”
Among the three reasons why Winklevoss unmasked, he determined the proportion of much larger capital in the cryptocurrency market.. Tether’s market capitalization and Grayscale’s AUM show that cryptocurrencies contain much more capital than in previous years. For this reason, investors believe that an upward trend among private investors could trigger a recovery in FOMO.
Based on various metrics, Jason Williams, co-founder of Morgan Creek Digital, said Bitcoin should hit a new record in 2020.
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