FOMO. Will it catch you? A human emotion that has caught people through the centuries.
Bitcoins price has risen faster than Caster Semenya runs the 800meter dash. Faster than a bong hit sends you to Mars. It has returned more than a whopping 87% this year. Bitcoin is at its highest level since August of 2018!
Bitcoins dramatic and continued breakout has created a sense of despair and panic among those traders and nay Sayers who neglected to accumulate during the pits of the bear market. That FOMO is exerting a strong pull on crypto participants who believe that the days of ultra-cheap Bitcoins are over.
Unless you are cost averaging and accumulating at any price Zootly feels that a pullback is perhaps likely so be cautious of over exposure. And be patient.
With the renewed interest from the retail and institutional investors our conviction is that the Crypto winter is behind us. Is it time to germinate? Is it time to plant your seeds?
MAIN REASONS BITCOIN IS SMOKING HOT; –
ACCUMULATION; – Since March the charts show that there have been more buyers than sellers and participants have been accumulating.
BITCOIN WHALES; –
Buyers with very deep pockets have mysteriously spiked the price by more than 20% in April. A few exchanges have reported purchases during that time of over 100Mill dollars. A few of these large purchases have been institutional, eg, fidelity,- reports say.
BITCOIN DOMINATES THE CRYPO SPACE; –
Bitcoins rapid price rise has also seen it overtake other Crypos in percentage, (Dominance rate) Which refers to the percentage of the total cryptocurrency market held in BTC. Bitcoins dominance peaked at 59% over the weekend, the highest since Dec of 2017. This implies that crypto market players are switching out their alt coins for the Mamba. Shooting for the ‘Blue dream’
UNCORRELATION WITH GLOBAL MARKETS; –
Heightened global tensions has placed fear in the markets. The recent trade wars between the USA and China have seen huge daily price swings in the markets with growing uncertainties. The last week has seen BTC pricing being totally uncorrelated with this fear. Almost inversely so implying crypto could be seen as a safe haven. No asset class on the planet has surged more than 87% this year. Not even your good old Mary Jane stocks.
“Crypto fundamentals have been strong and building since early this year, when it was clear that they were oversold, and the continued parade of positive news and new retail and institutional offerings launching are firmly behind this bull market move.” Says Zootly.