CryptoQuant CEO Sees No FOMO in Retail Bitcoin Activity Despite Price Fluctuations

• Ki Young Ju notes stable Bitcoin trading frequencies despite recent price dip below $92,000.”
• “Bitcoin’s Fear & Greed Index at 77, indicating extreme greed, as price nears $100,000.”
• “MicroStrategy’s recent $5.4 billion investment underscores strong institutional confidence in Bitcoin.”

Ki Young Ju, the CEO of CryptoQuant, pointed out that retail investor activity indicates a cautious approach despite recent price volatility. Ki Young Ju explained that the trading data does not indicate that users started buying bitcoins because of FOMO when the Bitcoin price was near $100,000; instead, it became significantly lower after that, to levels below $92,000.

The analysis pointed out that the trading intensity remained stable in both spot and futures markets without the concentration of heavy trading volume. This could imply that many amateurs have yet to start making unsound decisions; they might be waiting for some effect to explode. Historically, retail-driven FOMO has been a significant driver of price surges, such as during Bitcoin’s climb to $69,000 in January 2021.

Neutral Sentiment Persists Since April 2024

The retail trading intensity has been flat since Bitcoin was worth $64k in April. Even as the price of Bitcoin reached nearly $100,000, ordinary people’s activity did not show much enthusiasm or fear. This measured participation is quite different from the earlier bull markets, in which retail investors escalated the market performance,

Further, QCP Capital’s analysis confirms this trend and states that the current Bitcoin price decline is influenced by macroeconomic factors rather than investors’ fear. Market movement in the near term will be driven by the minutes of the Federal Open Market Committee (FOMC) meeting and the Personal Consumption Expenditures (PCE) report.

Market Indicators Show Mixed Signals

Nevertheless, fundamental market factors indicate an uptrend in Bitcoin prices following the price drop. This suggests extreme greed because the Fear & Greed index is currently 77. However, crypto analyst Ali Martinez suggested an upswing back to $95,000 based on the buy signal of the TD Sequential indicator.

However, noticeable outflows occurred in Bitcoin, with spot ETFs having $438 million withdrawn on November 25. On the same note, a 100M+ investment, such as MicroStrategy’s latest 5.4B worth of Bitcoin, still shows institutional confidence in the asset.