Fundstrat’s Tom Lee: We Are At The Highest Level of FOMO And Bitcoin Could Reach $50,000 USD
The Bitcoin market is getting hotter and hotter now, so you can probably see fireworks soon and we’re not talking about the Fourth of July. According to a recent tweet made by Thomas Lee, one of the members of Fundstrat Global Advisors, you can bet that we’ll see some fireworks in the Bitcoin market pretty soon.
Lee affirmed that ever since Bitcoin was able to cross the $10,000 barrier, the cryptocurrency market has started a “level 10 FOMO”, which means that the fear of missing out is reaching new levels now. He affirmed that Bitcoin has been in this price only 3% of the days so far in its history.
Until now, Bitcoin has beat the expectations of most analysts. Most people were expecting that it would go down hard after reaching the $10,000 USD mark, but this has not happened yet.
Many specialists saw bearish signs when BTC reached $13,800 USD and slipped. However, BTC quickly bounced up again, despite not going back to that price until this moment. This is making investors confident that we will see prices skyrocketing even more soon.
If history is any indication of the future, the asset may be acting in a similar way to how it did back in 2011 and 2012 when it feels a lot, bounced right back up even more and then it has fallen still above the average that it had before.
Another important factor to watch out for is that every time that Bitcoin failed to hold its parabola for the long-term, it suffered a correction of over 80%. Generally, people enter during the fear of missing out and when they see that the prices are basically falling down hard, they abandon the “sinking ship” and the correction happens.
Lee, however, seems to be confident that BTC will reach a high price again. According to some of his previous remarks, once the $10,000 USD barrier would be breached, prices such as $20,000, $40,000 and even $50,000 USD could appear soon.
While Lee is not always right about his predictions, BTC is highly volatile right now, which means that there are a lot of new traders and that prices could go up and down quickly.
Also, a new all-time high could benefit Bitcoin a lot because it would work as free advertising for the assets. Not only people are hearing a lot about cryptos because of initiatives such as Facebook’s Libra, but a new all-time high could change people’s perception about Bitcoin and help it to grow.
One doubt that still continues, though, is whether retail investors or the institutional ones will be the ones to lead the next wave of investors. While some people affirm that one group will be the most important ones, many experts seem to be undecided.