A leading analytics firm says FOMO (fear of missing out)-driven crypto investors are diving headfirst into Bitcoin, just as crypto traders are unloading their BTC stacks.
Santiment says on social media platform
According to the analytics firm, FOMO for BTC is beginning to peak as market participants anticipate a potential Bitcoin spike to a six-figure price level.
“The rise of Bitcoin has been so rapid that traders are now speculating how soon we will see a market cap of $100,000. While this price was incomprehensible just two to three months ago, the community has quickly changed its tune after a +70% increase since the August 5 crash.”
As Bitcoin sets a new all-time high, Santiment notes that traders who positioned themselves before the upside burst are using the rally to offload their coins.
“Bitcoin is seeing a huge spike in profit-taking trades as traders try to sell at the top. Meanwhile, funding rates on Binance and Bitmex indicate aggressive margins and leverage longs looking to capitalize on further gains.”
Even amid the market exuberance, Santiment notes that Bitcoin can still rise to much higher levels as long as deep-pocketed investors continue to add to their BTC stacks.
“Over the past year, whale and shark wallets holding at least 10 BTC have amassed a total of 234,150 (now worth $19.76 billion).
The rise of cryptocurrency can largely be attributed to the continued trust and accumulation of these major key stakeholders. However, the consistent FUD (fear, uncertainty and doubt), capitulation and inconsistent trust in crypto (allowing whales to buy cheap) have also contributed to this historic run.
Currently, euphoria is high (although nowhere near the level of mid-March, when Bitcoin was in its previous all-time high cycle). Expect prices to rise as long as the whales keep buying more and the retailers keep selling them their cheap coins during small dips.”
At the time of writing, Bitcoin is trading at $87,964, down more than 1% on the day.
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