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As Bitcoin (BTC) becomes closer and closer to $9,000 there are several analysts that expect the digital currency to reach $10,000 and new highs in the near future. According to Thomas Lee, the co-founder of Fundstrat Global, if Bitcoin reaches $10k, it could trigger FOMO (Fear of Missing Out) in the market.
Could FOMO Come Back To The Market?
Thomas Lee, a recognized bull in the crypto market, said that the point of the chart that would trigger real FOMO is when Bitcoin exceeds $10,000. He said that after he answered Adam Samson, a Financial Times’ journalist that shared an image in which it is possible to see that Bitcoin was traded above $10,000 just 3% of the time.
The chart shows that Bitcoin exceeding $8,350 is like surpassing $3,200 in 2017. Thomas Lee added that Bitcoin surpassing $10,000 now would generate the same effect as when Bitcoin crossed $4,500 in 2017.
Actually the point of the chart is to say “real FOMO” probably starts when #bitcoin exceeds $10,000 as that is a price level only seen 3% of all days…
…mathematically equivalent to exceeding $BTC $4,500 in 2017
Looking back, that price was a level that indeed triggered FOMO
— Thomas Lee (@fundstrat) May 29, 2019
As Lee explains, when Bitcoin surpassed $4,500 the market entered in a FOMO phase that ended with the most popular digital asset reaching $20,000 and dropping to $3,200 a year later.
Nonetheless, another user called John Silvestro, said that exceeding $4,500 in 2017 was an all-time high. He said that anything above $1,100 during 2017 was indeed a new all-time high for Bitcoin. That means that a real comparison for $4,500 in 2017 would be around $77,000 today.
The graphic presented by Mr. Samson shows the different FOMO levels of the Bitcoin market divided into different stages from 1 to 10. 1 is the less FOMO level while 10 is the highest point. Thus, the price surge of Bitcoin above $7,000 triggered a “baby” level of FOMO, but far from the highest stages.
According to CoinMarketCap, Bitcoin is being traded around $8745 and it has a market capitalization of over $155 billion. This is a very important price for the digital currency. If it is able to remain close to these levels, the virtual currency could try to surpass $9,000 in the near future.
Thomas Lee predicted that Bitcoin was going to reach $50,000 in 2018, but instead, the digital asset fell to the lowest point in more than 12 months. Now, the market is getting prepared for what can be a very positive year in 2020.
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