Why is FOMO relevant to the cryptocurrency market?

cryptocurrency market
Image Credit: Pexels

The remarkable gains are noticed in history. Digital currencies like Bitcoin, Litecoin, and Ethereum have progressed a lot. These cryptocurrencies have progressed from a few cents to thousands. Great progress has been noticed especially in bitcoin.

There are so many people in cryptocurrencies who invested their money. No one is eager to miss out on the next incredible rise. What is the actual meaning of this? It means that as soon as people think that a specific cryptocurrency can run, then a vast number of people will start to purchase the currency because of FOMO.

FOMO is considered by various factors. The reason for various factors is due to blockchain technology. Both blockchain, as well as cryptocurrency, are in their infant stage.  Due to this many people have a belief in their mind that there is a large potential for exponential growth. The investors who earn their money on the asset are those persons who bought from the earliest. Anyone who bought just $50 or $100 worth of Bitcoin in 2010 would have seen their BTC holdings grow to be worth millions of dollars at today’s prices. So, the enormous gains seen by some of the top cryptocurrencies help to fuel investment in other coins.

However, it is not always just individual coins that are benefited from FOMO. Almost the entire cryptocurrency market at large gets its benefits from FOMO. The market is presently encountering something of a rush of population. Their main intention is to get their hands on some cryptocurrencies.

Crypto FOMO makes more than 350% premium on Bitcoin.

 It has been seen that the biggest cryptocurrency is almost above $23,000. However, the cryptocurrency has also raised the rate of the Bitwise 10 Crypto Index Fund (ticker BITE) as much as 650%. The price has also gone up to the company’s custody and trading near 350%, according to the evidence which it assembled by Bloomberg. Meanwhile, the earnings on the Grayscale Bitcoin Trust bulged to 34% amid the conference and meetings.

Marketers often face these types of dislocations. These types of dislocations mean that big institutional investors and the dealers alike have to pay off massively to pay for percentages, versus purchasing the underlying ownership outright. But as Bitcoin’s 200% year-to-date rally persuades frantic awareness and stokes suspicions of further missing out on the increases, pressure for anything with a crypto wrapper is booming more and more. For those investors, who are looking to have an entry to Bitcoin but who are unwilling or hesitant about how to get immediate susceptibility. The comfort of purchasing commodities like BITW or GBTC through a brokerage strategy trumps the additional expense.

Read more:

BITW has risen more than 165% since its debut in December 2020, far outpacing the gains in Bitcoin and Ether. GBTC has climbed roughly 40% over that period. Those disruptions periodically seem in the $5 trillion exchange-traded fund universe, especially in periods of intensified volatility. But scarcely outweighs 3% or so.

subscribe for updates.


Get latest news updates on Crypto Currency, Bitcoin and more…