When Is ATH? Bitcoin (BTC) May Rise Above $64.8K Due to FOMO

When Is ATH? Bitcoin (BTC) May Rise Above $64.8K Due to FOMO

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A powerful rally in bitcoin could quickly bring it to a new all-time high. Now the leading cryptocurrency is supported by late investors.

Whales bought bitcoin during the coin’s recent dip to $41K – $43K. Analysts believe that it was these large infusions of funds that triggered the rally. In turn, the whales took the statements of American officials that cryptocurrencies would not be banned in the United States as a starter gun. Due to large investments, bitcoin grew by almost 8% per day.

Earlier, investment firm CoinShares reported buying large amounts of BTC on the over-the-counter market (OTC). However, probably not all whales had time to buy low. Players are discussing a $1.6 billion purchase of BTC through Coinbase and Binance. Such purchases have a very strong impact on the market. Usually, whales use OTC to prevent transactions from moving prices too fast.

A large purchase on exchanges may be due to FOMO (fear of missing out). Usually, retail investors are FOMO prone. Retail volumes are small, so FOMO moves the price up 10% -15% for a short time. A large purchase can have a much stronger and more lasting effect on the market.

Experts allow a double interpretation of this event. Firstly, it really can be a whale or whales, for various reasons, missed the right moment to buy. Fearing that the price would rise very quickly, they made a purchase on the exchange because OTC is a slower market.

The second and more interesting explanation is that a player or group of players decided to play bullish. Buying BTC through exchanges heats up the market. The whales have the opportunity to take profit on the high before the market crash.

Lucas Outumuro, research director at Florida-based IntoTheBlock, notes:

– Given that bitcoin broke out of a multi-month trendline and above a local high, I’d argue there’s a high amount of momentum trading taking place in spot markets – with high volume and conviction.

Bitcoin price can be predicted based on bitcoin futures trading data. According to derivatives research firm Skew, monthly futures contracts on the Chicago CME are traded at an annual premium to the spot price of 17.73%. However, in the cryptocurrency market, the situation can change dramatically as a result of the authorities’ or regulators’ actions of different countries. In particular, the market may now skyrocket after the approval of applications for ETFs (exchange-traded funds) based on bitcoin futures. SEC Chairman Gary Gensler recently spoke about this in the US Senate.