Prepare for a Bitcoin FOMO rally to record highs

Prepare for a Bitcoin FOMO rally to record highs, per Bernstien.


Bernstein analysts argue that a combination of factors, including the introduction of Bitcoin exchange-traded funds (ETFs) and a growing fear of missing out (FOMO) among investors, could propel the cryptocurrency to new highs.

One major factor is the recent introduction of Bitcoin ETFs, which allow traditional investors to gain exposure to Bitcoin without dealing with the complexities of direct cryptocurrency purchases. This could lead to a significant increase in institutional investment, driving up demand and pushing prices higher.

The analysts also point to Bitcoin's increasing mainstream acceptance. Major companies are adding Bitcoin to their portfolios, and countries like El Salvador are adopting it as legal tender. This global legitimization of Bitcoin could spur mainstream adoption, creating a surge in investor demand and propelling Bitcoin to new record highs.

Despite Bitcoin's significant progress, current enthusiasm levels have not yet reached the peaks seen during the notable bull markets of 2017 and 2021. However, Chhugani and Sapra believe that the landscape is rapidly changing, highlighting the importance of Bitcoin ETFs in shaping the cryptocurrency's trajectory.

Yassine Elmandjra of ARK Invest recently noted an interesting trend that contrasts Bitcoin's recent price performance with its search volume metrics. Historically, spikes in Google searches for Bitcoin have coincided with price surges, especially during the bull markets of late 2017 and early 2021.

Despite the price increase, search volume for Bitcoin remains relatively low. This suggests that the current price rally may not be driven by the usual retail excitement or widespread speculative interest seen in past cycles.