May 14, 2019 | AtoZ Markets - Following the outstanding crypto markets’ increase, the upcoming cryptocurrency FOMO grips bitcoin investors attention. What to expect from the crypto markets overall and bitcoin in particular?
Crypto markets increase: Bitcoin hits the records
According to the latest Bitcoin price analysis, the father of all cryptos has continued its market dominance in May. Eventually, for the first time since July 2018, it has surpassed $ 8,000 and hit a ten-month high of $8,045 according to Coinmarketcap.com.
This has had made the entire crypto market surge by over $20 billion which let FOMO fever to take over the crypto investors for a while. At the time of writing, BTC had jumped to $8,051.37 which is up significantly on yesterday.
According to the latest reports, bitcoin value gain over the seven days has reached a significant 33 percent and daily volume has surged back to $30 billion with Bitcoin dominance approaching 60 percent.
The bitcoin FOMO 2017 scenario repeats
The last time Bitcoin dominated the market was during its massive surge in December 2017 when it reached $10k in a single month. In the period of such crypto markets increase, crypto FOMO hit its peak. Bitcoin made headlines around the world and people who previously had no interest in crypto mourned that they hadn’t purchased Bitcoin before it took off. At the same time, certain crypto traders also experienced crypto FOMO. They got caught up in the hype, dumped other currencies and poured all their money into Bitcoin when it was at its most expensive.
The current chart patterns are reminiscent of that late 2017 period when things went parabolic in the crypto market. However, this time bitcoin is getting the lion’s share of those gains and analysts are now expecting it to reach $8,200 and a possible correction to $6,400, last year’s most traded price. The big bitcoin’s price move has resulted in a $20 billion cash injection to the total crypto market cap which is currently at its highest level since early September 2018.
A few hours ago the market hit an eight-month high of $235 billion ago as volume surged to record levels of $90 billion. Over the past week, the crypto market cap has surged 24 percent and since the beginning of 2019, it has made 87 percent.
What is crypto FOMO?
FOMO stands for the Fear Of Missing Out. In cryptocurrency, this term is often used to describe the tendency of investors to the panic of missing out profits. If FOMO grips bitcoin investors they begin buying coins or tokens when they see that the price is going up.
FOMO could be dangerous, particularly in crypto markets as volatility can quickly amplify the losses. Crypto FOMO is related to the fear of missing out trading crypto. FOMO is pronounced when a particular currency sees huge gains. In cases when crypto increases rapidly in value, it can drive people to buy a currency at less than optimal timing. The same is true of dramatic drops in value.
FOMO is considered to be a huge obstacle to smart crypto trading as crypto trader’s decisions are irrational because they’re based on emotions rather than actual analysis.
For example, the fear of missing out on a cryptocurrency that could someday make people tons of money could lead to making unwise decisions to buy when you shouldn’t buy, or sell when you should HODL. To avoid making bad decisions because of FOMO it is crucial to prioritize actual data, rather than a ‘feeling’.
FOMO grips bitcoin investors - crypto market reacts
Overall, the cryptocurrency outlook seems positive as most crypto assets have recorded decent gains. There has been an increase of tether (USDT) and U.S. dollar trading. Bitcoin core (BTC) reached $8,160 per coin at around 5:30 p.m. EST, but had subsequently fallen to $7,700 range by 7:30 p.m. Currently, BTC is trading for $7,986 per coin and is up 14.1%. Bitcoin Cash (BCH) jumped above the $400 range and hovers around $392 per BCH at press time.
On May 13, the second highest valued market capitalization belonged to ethereum which was up 6.3%. Each ETH was swapping for $200 per coin and the cryptocurrency had a market valuation of around $21.2 billion. Ripple (XRP) followed ETH with a market cap of about $14.2 billion as each coin was trading for $0.33. Litecoin (LTC) had seen a meager gain capturing 3.9 %.