FOMO and fundamentals to fuel Bitcoin’s latest bull run
As Bitcoin hit its highest level since the beginning of the year earlier this week, the latest price run will be fuelled by the Fear Of Missing Out (FOMO) and fundamentals.
The world’s largest cryptocurrency by market cap has risen close to 25% over the past 10 days, surpassing the $35,000-$45,000 range it’s been in since January. Indeed, BTC is moving ever closer to the all-important $50,000 mark.
As I was quoted by Forbes, Yahoo News, Financial Mirror, Tech Telegraph and The Motley Fool, amongst other global media, if Bitcoin surged through this key price level, we predict the bull run we’re witnessing now would become turbocharged as crypto FOMO would take over. As it usually does when Bitcoin prices soar.
As such, the $50k mark will serve as a reminder to investors who haven’t perhaps recognised that digital currencies are inevitably the future of money.
This is becoming ever clearer, even to institutional investors, such as credit unions, banks, large funds such as mutual or hedge funds, venture capital funds, insurance companies, and pension funds, as well as governments and multinational companies.
Therefore, prices are set to soar over the long-term, and of course, institutional and retail investors won’t want to miss out on gaining an early advantage. I mean, who would want their investments to stay stuck in the past as the finance world progresses? Yes, FOMO is real for investors.
That said, even though FOMO is strong, it isn’t typically a sound way to reach investment decisions. Yet, Bitcoin’s fundamentals are indeed sound.
There is intrinsic value in digital, borderless, global currencies for trade and commerce purposes in our increasingly digitalised economies where businesses operate in more than one jurisdiction.
Furthermore, Bitcoin’s other key characteristics, such as being, permissionless, censorship-resistant and unconfiscatable, have also come to the fore during the recent geopolitical turmoil.
We’re speeding towards a digital revolution, and as more and more investors focus on that, Bitcoin’s long-term trajectory can surely only go one way. Up.