Bitcoin has seen a redeeming month in terms of growth. This growth has taken bitcoin from just above the US $6000 to now almost touching $9000. This growth has been a little bit absurd because of the nature of it and some unusual sudden spikes in quick moments. Will this trigger another full-blown FOMO again and will Bitcoin reach or even exceed the enormous rise again?
Tom Lee Suggests Bitcoin Will Rise
This year has been a redemption story for Bitcoin. Starting at one of the lowest levels ever, it has come back and has been strong as ever. Tom Lee, the co-founder of Fundstrat has cited data which suggests that Bitcoin price can go for a full blown ‘FOMO’. FOMO stands for Fear Of Missing Out, where investors anticipate the rise in price and invest in crypto which raises the price further up. The enormous 2017 Bitcoin price was a result of a full-blown FOMO.
Tom Lee, says that when Bitcoin prices cross $10,000, the price will reach full-blown FOMO. Full blown FOMO is cited as Level 10 FOMO, where the majority of the market gets aware of the the price rise. The concept of FOMO isn’t only limited to cryptocurrencies but also financial assets as well. In a Tweet from Adam Samson, the Global Head of Financial Times, Tom Lee specified that Full blown FOMO is only happening after the price crosses the threshold of $10,000. He replied with the following words :
“Actually the point of the chart is to say “real FOMO” probably starts when bitcoin exceeds $10,000, as that is a price level only seen 3% of all days… …Mathematically equivalent to exceeding $BTC $4,500 in 2017. Looking back, that price was a level that indeed triggered FOMO.”
Hype Around FOMO
2017 was the year that Bitcoin really got up and almost reached a point of $20,000
Looking at data of 2017 and comparing with data of 2019, it is evident that the price growth has been eerily similar and a full blown FOMO is a possibility. The people and pundits alike will be waiting for such exponential growth to capitalise on it.