Bitcoin has incurred another serious rise and is now trading for over $11,800.
The FOMO Attitude Has Come Back to Bitcoin
Many analysts believe that an attitude of FOMO (or “fear of missing out”) has returned to the crypto space. With bitcoin on the rise of late, many new players are looking to get involved in the bitcoin market and play their hands, hoping to come up with a win. This is the same attitude that meandered throughout the crypto space in late 2017, when the asset was reaching its all-time high of nearly $20K per unit.
Joe DiPasquale – the CEO of San Francisco’s Bit Bull Capital – explained:
Bitcoin is currently in a break-out phase, just as it was in the first six months of 2019, when it increased in value by 189 percent… In cryptocurrency, we often see ‘momentum’ plays.
If FOMO is indeed taking over the crypto arena as we know it, there are both positives and negatives to be considered. On the one hand, bitcoin needs to attract newcomers and be traded to get anywhere. If it’s price is ever going to continue rising or if the currency is ever going to be considered mainstream or legitimate in any way, it needs to attract a level of attention that’s comparable to credit cards or fiat currencies, so the more people involved, the better usually.
On the other hand, this can potentially come back to nip bitcoin and its users in the bud considering this is exactly what occurred three years ago. At that time, bitcoin had shot up to its highest level on record, but just over a month later, the currency saw itself crashing to new lows and losing thousands off its price within relatively short periods. Sometimes, an influx of people can potentially bring something to its knees, as it’s not prepared for all the business it’s slated to do.
What we’re seeing today is relatively similar. Cryptocurrency exchanges such as Coinbase in San Francisco report that the number of new users signing up for accounts has surged in the past two weeks alone, meaning that several people are getting involved when just a month ago, they had likely never even looked at the bitcoin symbol before.
Other trading platforms, such as Binance US, says that bitcoin trading is at its highest levels this week. Cory Klippsten – tech investor and founder of bitcoin app Swan Bitcoin – stated:
[This week] blew away anything we’ve seen… The expectations of so many [bitcoin investors] that we’re in the early stages of another meteoric rise may be self-fulfilling.
More Demand Than Ever?
Meanwhile, several smaller bitcoin platforms – such as Shakepay in Canada – have reported huge surges in demand. Chief executive Jean Amiouny explained:
During the last few weeks, we’ve seen a significant surge in customer registrations and activity on our platform.