The price of Bitcoin is still beneath its psychological level of $10,000 which is said to be a FOMO trigger for a notable cryptocurrency bull rally. However, data shows that retail FOMO is already rising and when this is the case, institutional interest is declining. Market participants are considering the adequacy of retail FOMO to initiate a new bull market as well as the necessity of institutions for a bigger push.
Bitcoin has not met the expectations of market participants since its successful block reward halving. Extremely bullish momentum anticipated before halving and low prices from the cryptocurrency market crash in March prompted a surge in retail buying.
Likewise, the United States government started issuing stimulus checks to taxpayers, and some of them invested in Bitcoin as well as other cryptocurrency assets. This is based on data which revealed an instant rise in $1200 (exact highest sum offered as stimulus by the government) Bitcoin purchase.
The price of BTC has been rising steadily and revisiting $10k. However, it was able to surge above the level for some moments before rejection.
According to data, retail FOMO continues to grow as the price of Bitcoin keeps surging, while institutional interest from people like Paul Tudor Jones facilitated Bitcoin’s move from its low levels. Retail FOMO could be sufficient to bring about an upsurge to a fresh lifetime high.
Towards the end of 2016, natural bottoming as well as the cryptocurrency bear cycle ending led to a rise in Bitcoin prices which became FOMO in early 2017.
FOMO eventually turned into panic purchasing of Bitcoin and altcoins, leading to the inflation of a bubble. The price of Bitcoin was $10k in Nov. 2017 and surged to $20k after a month. So the question now is the possibility of a surge over the barrier to bring about yet another instant surge to a lifetime high.
This is possible because Bitcoin’s low supply and illiquid market leads to a rise in value when demand increases. This is why the largest crypto asset’s rally grows in a parabolic manner until that momentum diminishes.