The Bitcoin FOMO (Fear Of Missing Out) is raging on and it has done a lot to impact positively on the digital currency’s price. Today, the $9,700 price we’re seeing seems not to be the best of its kind since cryptocurrency investors have their eyes on the $15,000 price level. But is the price action real? Let’s take a quick look!
Bitcoin Spikes to Year-to-Date High of $9,800
Bitcoin, the top cryptocurrency by market cap spiked to $9,500 on Thursday, June 20, 2019. The price movement continued into Friday, June 21, 2019, which landed the virtual asset on its year-to-date high and 15-months high (since March 7, 2018) of $9,800. The FOMO at this point is high given that Bitcoin could potentially run past $10,000 right in front of our eyes. But take note, a $10,000 price level has a lot of significance to the cryptocurrency community.
Check this out! Tyler Winklevoss, a Twin Bitcoin billionaire who reportedly owned 1% of the entire circulating Bitcoin supply alongside his brother, Cameron Winklevoss recently made a prediction. According to Tyler in a Tweet on June 19, 2019, if Bitcoin dares to break the $10,000, then there’s nothing stopping it from breaking past $15,000.
If bitcoin breaks 10k, you can bet it’s going to break 15k…👍🏻🚀
— Tyler Winklevoss (@tylerwinklevoss) June 19, 2019
Bitcoin’s $10,000 Price Level Will Easily Take Out 2017’s All-time High
While Tyler’s prediction was all fine and good, Tom Lee, Fundstrat Global co-founder who has always been bullish about Bitcoin, said on June 18, 2019, that the Bitcoin’s $10,000 price will easily take out it’s all-time high of $20,000 in December 2017. Even before this time, Lee while at the CryptoCompare Digital Asset Summit 2019 in London took the time to explain while $10,000 is exceptional for Bitcoin and represents a FOMO level.
According to Tom Lee:
“To be more clear, we looked at past fear of missing out (FOMO) periods; so when does bitcoin trade within 3% of its historical price levels and that was roughly $10,000 for bitcoin. And looking at the past bull cycles, once you breach that FOMO level, bitcoin typically rallies [200%] to 400%.”
Bitcoin’s $10,000 is the Current Psychological Level
Following Lee’s comment, it can be said that the $10,000 price level is the current psychological level where investors’ interest in the cryptocurrency market increases. This is because there are expectations that the momentum could strengthen (around 200 to 400 percent increment in price) in the long run and lead to a new all-time high which was evident over the past three years.
Possibly, this belief may have led to the sentiment in the crypto market since April, with many hoping that Bitcoin could get to its highest FOMO level. Google Trends, for instance, shows that Bitcoin searches reached a 12-month high in May. Thus, the top cryptocurrency has been in the limelight for a long time.
Is the Price Action Real?
The FOMO may still be on, but the recent events surrounding the cryptocurrency space shows that the possibility of the current price being sustained and even surging onwards is high. Some of these events include Facebook’s revelation that it will launch a global currency, Libra in the first half of 2019. It is not just any currency, but one that relies on cryptocurrency technology. As such, it could expose almost 2 billion users of Facebook to the crypto space and even garner the interest of many to Bitcoin and altcoins.
Just about the same time when Facebook’s Libra is the talk of the internet, the U.S. Federal Reserve hinted that it might reduce interest rates from next month in order to bring about economic growth. What the latter means that it could make the dollar weaker (and Bitcoin an attractive alternative) even though the step is actually good for the markets and money supply.
Nonetheless, more money in circulation as pointed out by Scott Weatherill, a former trader at Goldman Sachs, usually goes with a spike in Bitcoin’s price. Arthur Hayes, CEO of cryptocurrency exchange, Bitmex in a Tweet on June 19, 2019, also noted this when he said: “When the Fed prints, #Bitcoin rips.”