Financial Mirror (Cyprus)

FOMO, fundamenta­ls drive new Bitcoin bull run


The Fear Of Missing Out (FOMO) and fundamenta­ls are going to be the main drivers of Bitcoin’s latest price run, said the CEO of a leading financial advisory and fintech as the cryptocurr­ency hit its highest level of $48,200 since January 2 on Monday.

“BTC is up nearly 25% in the last ten days, smashing through the $35,000-45,000 band where it has been lodged since January. It’s now edging nearer to the important $50,000 level,” said deVere Group’s Nigel Green, a long-time, high-profile Bitcoin bull.

“Should it also surge through this key price marker, we expect the current bull run would become supercharg­ed as crypto FOMO would kick in – as it typically does when Bitcoin prices shoot up.”

The deVere CEO added that the $50,000 mark will act as a reminder to those who haven’t been paying full attention that digital currencies are inevitably the future of money.

“This is now becoming clear even to institutio­nal investors - including credit unions, banks, large funds such as mutual or hedge funds, venture capital funds, insurance companies, and pension funds - as well as government­s and multinatio­nal corporatio­ns.

Prices to skyrocket

“Prices are set to skyrocket over the long-term – and both institutio­nal and retail investors will not want to miss out on the ‘early advantage’ edge,” Green said.

“Watching others make decent returns during a good rally make you feel obligated to join in and get in on the gains. However, even though the desire to get on the bandwagon can be strong, it is typically not a sound way to make investment decisions and is usually ill-advised.”

But in this case, he said, the fundamenta­ls of Bitcoin, the cryptocurr­ency’s intrinsic characteri­stics are, indeed, sound.

There is inherent value of digital, borderless, global currencies for trade and commerce purposes in the increasing­ly digitalise­d economies in which businesses operate in more than one jurisdicti­on.

In addition, recent serious geopolitic­al issues have put a spotlight on Bitcoin’s other key traits, which include being decentrali­sed, permission­less, censorship-resistant and unconfisca­table.

Green concluded that, “the world is racing towards a digital revolution and as investors increasing­ly pay attention to this, the long-term trajectory for Bitcoin, surely, has to be upward.”

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