FOMO Unleashed: Expert Reveals How Far Bitcoin’s Rally Could Go

CN
2 days ago

Bitcoin has reached a new all-time high, spurred by investor enthusiasm and a wave of “fear of missing out” (FOMO) amid favorable market conditions, said Alexander Blume, CEO of digital asset firm Two Prime. Blume noted that “BTC and nearly all risk-on assets have rallied following Trump’s election victory,” reflecting widespread optimism for policies that could benefit business and innovation.

“The market is largely expecting pro-business tax cuts, reduced regulation, especially at the SEC [U.S. Securities and Exchange Commission], and the continuation of increased government spending,” the executive detailed, adding:

Until Trump gets into office, there is nothing based in reality to dampen hope and speculation.

The positive sentiment has driven bitcoin, which Blume calls “a top indicator of global liquidity and loose money,” to rally to new highs, while the broader cryptocurrency market has been “massively de-risked, now that a pro-crypto administration has gained power.” Control of the House and Senate also raises the possibility of “real rules and fair regulation” in the upcoming term, he opined.

Blume pointed to bitcoin’s strong performance as part of a long-term pattern, noting: “BTC is showing signs that it continues to follow its four year parabolic pattern, with high returns usually following the U.S. elections and the four year global liquidity cycle.” This pattern has boosted confidence among investors who now feel “it’s time to put on the gas,” he described.

Bitcoin’s surge over the weekend may have triggered FOMO, especially for exchange-traded fund (ETF) investors who have been waiting for an entry point, Blume stressed, emphasizing: “Between this weekend’s rally to 82k and now a new ATH today, this likely also creates a sense of FOMO for ETF investors who have been sidelined until this morning. BTC is a momentum-driven asset in many respects and the momentum is heading higher.”

In a Schwab Network interview on Monday, Blume said that bitcoin could reach $100,000 by year-end, citing multiple catalysts. Commenting on the potential for BTC to reach $100K, he said:

I think it’s gonna happen sooner than you think. I wouldn’t be surprised by the end of the year … There’s a slew of amazing things and I think $100K by the end of the year is definitely possible.

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