An analytics firm has observed that Bitcoin’s recent surge to nearly $90,000 is driving FOMO (fear of missing out) among retail investors, even as seasoned traders sell their holdings.
Santiment reports that Bitcoin’s rapid rise has reignited optimism, with many speculating that it could soon hit $100,000—something unimaginable just months ago after the August 5 crash.
🧐 Bitcoin’s rise (now $87.1K) has been so rapid that traders are now speculating how quickly we see a $100K market value. Though this price was beyond comprehension just 2-3 months ago, the community has quickly changed its tune after a +70% surge since the August 5th crash. pic.twitter.com/rVxD3EumAc
— Santiment (@santimentfeed) November 11, 2024
While Bitcoin is setting new highs, Santiment notes that early investors are taking profits, causing a surge in sell transactions. At the same time, margin trading on exchanges like Binance and Bitmex shows traders betting on further price increases.
However, the firm remains optimistic about Bitcoin’s potential, attributing its rise to continued accumulation by large investors (whales), who have added over 234,000 BTC worth nearly $20 billion in the past year.
As long as whales keep buying and retail investors sell during dips, Bitcoin’s upward momentum could continue, although current market euphoria is still lower than previous all-time highs.
As Bitcoin pushed past $111,000 on May 22, breaking its previous all-time high, activity in the futures market erupted in response.
Fifteen years ago, a programmer unknowingly made history when he traded 10,000 bitcoins for two pizzas—marking the first documented purchase using cryptocurrency.
Strategy, the rebranded identity of MicroStrategy, is preparing to raise up to $2.1 billion through the sale of preferred stock as part of its ongoing effort to grow its Bitcoin portfolio.
Bitcoin’s return to six-figure territory has reignited market optimism, but unlike the short-lived surge seen in January, the current rally appears to be built on firmer ground.