Today’s leading cryptocurrency, Bitcoin, continues to spike through the charts, with its market value already nearing $1 trillion. Analysts weigh in on “FOMO Bitcoin” strongly playing a part in the current frenzy.
Bloomberg reports that Bitcoin is closing in on $1 trillion for its market value. With all the attention it has been getting right now, it’s no wonder why this cryptocurrency is creating all kinds of record-breaking headlines almost every other day, if not every day.
Bitcoin immediately rose up to $52,000 only after a short while of making the front page of digital news fronts for breaking into the $50,000-ceiling. Micky News recently reported that the next milestone to be looked out for is when BTC market value exceeds $1T.
— LiveFreeDieHappy (@LiveFree_Happy) February 19, 2021
What is “FOMO Bitcoin”?
“FOMO” is a slang that means “fear of missing out.” Ergo, the thought of the phrase means people are causing a market frenzy because of the fear of missing out on the opportunity to grab Bitcoin while they still can.
Per AMP Capital Investors Ltd.’s head of investment strategy, Shane Oliver, that the fear of missing out “may be at play.” Further noting that “in times of easy money this gets magnified and it’s partly what’s driving the current interest.”
BTC kicked off 2021 with a booming start, with its price rising to a whopping 70% spike. The attention it’s getting from the likes of Tesla (Elon Musk), Mastercard, and MicroStrategy continues to blow the value of this digital currency off the roof.
Cryptocurrencies' market capitalization is now totaling $1.59 trillion
As for the trading volume in the last 24 hours, it has totaled $140.31 billion
— Crypto Gulp (@CryptoGulp) February 18, 2021
Bloomberg further reports that because of BTC’s performance, crypto “outstrip the performance of more traditional assets like stocks and gold.”
The outlet added:
“The largest token has added more than $415 billion of value in 2021 to about $956 billion.”
The dangers of “FOMO Bitcoin”
This current crypto frenzy has nudged almost everyone, even the non-traders, to place their bets on BTC. However, this hype also brings up quite a danger.
Today $1 million USD will buy you 19.23 bitcoins #Bitcoin
$1 trillion market cap next
— Bitcoin vs $1 Million USD (@btcto10million) February 18, 2021
Per Fxstreet, there’s now hesitation when it comes to selling decisions. Accordingly, the finance media outlet wrote:
“[..]mass FOMO and greed bring to the market a shadow layer of big investors, who, taking advantage of the infrastructure for investing that has been created over the years, can start playing against the market.”
Should Bitcoin continue to be bullish, building the price further to $60,000, even the non-investors will push to invest—again, because of FOMO. However, since this is trading and investment, there’s no exact moment to expect when the trend reversal could happen.
And those buying BTC on a $60k level are taking huge risks.
Featured image courtesy of Alesia Kozik/Pexels