Will Bitcoin price keep heading? Feeding the FOMO

Bitcoin price has maintained the $10k plus price level now for more than 83 days and still running while the FOMO continues to rage.

By · Oct 20, 2020 . 6min read

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Ethereum stole the show away from Bitcoin for many months in 2020 due to the explosive growth in DeFi. However, as the DeFi steam seemed to have cooled down, the emperor of cryptocurrencies, Bitcoin has resumed it’s dominance, especially in terms of FOMO. We have seen Bitcoin price maintained the $10k plus price level now for more than 83 days and still running while the FOMO continues to rage on.

The FOMO (Fear Of Missing Out) seems to be growing daily. Institutions and large corporations are making big statements, not with words but their capital. It’s been growing so much so that one body – Grayscale gulped in as much as 77% of all the mined bitcoins within Q3 amidst its growing ETH stash.

Bitcoin bulls are out calling out companies who may want to escape the “looming” fiat disaster to hedge not just with crypto but Bitcoin. From Twitter to Reddit, the chatters are pointing to the king crypto, “get in now, or it may be too late”. For instance, Carl Martin, who is better known by his Twitter alias “Moon Carl” tweeted recently around this subject.

You will always be able to buy #Bitcoin, but you have to realize that it gets more and more expensive over time… So, it’s a risk to wait.

Looking away from the FOMO, Moon Carl’s position has a flipside also. Bitcoin has a reputation for flash crashing more which could take even veteran crypto traders by surprise. A typical example was during the coronavirus market crash where BTC price crash by more than 50 % with 24 hours.

Latest Crypto Fear & Greed Index

At the moment, the Greed and Fear Index for crypto shows the FOMO is rising. Nonetheless, it’s yet to reach its 2017 moments where it hit more than 80%.

Federal Reserve chairman Jerome Powell to speak at IMF’s cross-border payments and digital currencies panel today could spark a FOMO in Bitcoin price.

Jerome Powell will be speaking in a panel organized by the International Monetary Fund today. He will be contributing his thoughts on “the benefits and risks of cross-border” digital currencies. And if we are to judge by antecedents, Powell appeared to have moved the market when he spoke on a Congress hearing this year. He acknowledged that digital currencies have become powerful and are worth taking a critical look. At another point last year, Jerome Powell pointed out similarities of Bitcoin to Gold saying the digital asset is like “speculative store of value“.

Be that as it may, the interest from institutional investors has continued to grow impressively this year. Many of them are clearly coming in to hedge against the “evil”. The days of negative interest rates are already here.

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