The Bitcoin (BTC) bull run has barely even started, but Fundstrat Global Advisors is absolutely euphoric. In a graphic published recently, the investment advisory firm suggested that the “Fear of Missing Out (FOMO)” is quickly materializing in the cryptocurrency markets, boding well for BTC’s performance in the short to medium term.
Mass FOMO On The Horizon
Fundstrat, especially its co-founder Thomas Lee, have kept an eye on the cryptocurrency space for years now. In a recent research note, which was reposted by Financial Times’ Adam Samson, the New York firm suggested that the Bitcoin market is currently in a euphoric state, marked by a “Level 5” on Fundstrat’s “Degree of FOMO” scale.
Per the graphic, this doesn’t mean that the cryptocurrency market has peaked though. In fact, the firm notes that investors have yet to experience “full-blown” FOMO, marked by a reading of “Level 10”. It is unclear how Fundstrat came to such a conclusion, but the company’s analysts are known for using the Bitcoin Misery Index to determine overall investor sentiment and the market’s overall direction.
— Adam Samson (@adamsamson) May 29, 2019
Once Bitcoin reaches $10,000, “Level 10” FOMO will grace this market, which last occurred when BTC blipped above $4,500 in late-2017. If history is any guide, the cryptocurrency market will shoot even higher once $10,000 is breached. As Lee wrote on Twitter earlier this month, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.”
Interestingly, just six weeks or so earlier, Adamant Capital’s Tuur Demeester suggested that the cryptocurrency market is still in a stage of “hope/fear”. But, seeing how dynamic this market is, it should come as no surprise that Fundstrat is expecting Bitcoin to enter full-blown FOMO in a short period of time.
It is important to note that the public’s awareness of Bitcoin is still rather low. As Redditor “ATC2017” recently pointed out, citing data from Altcoin Analytics, the words “Bitcoin” and “Crypto(currency)” only grace 0.6% of all mainstream financial news headlines, far from the 1.2% seen last May. This corroborates the sentiment that FOMO isn’t full-blown just yet.
- Courtesy of “ATC2017” on Reddit/Altcoin Analytics
Can We Hit $10,000?
So, this begs the question — can Bitcoin reach $10,000? According to a number of prominent analysts and traders, the answer to the aforementioned question is a resounding “yes!”
MarketWatch earlier this week noted that Think Markets’ chief financial analyst Naeem Aslam believes that Bitcoin is still decidedly bullish. In a research note sent to clients, he suggests that BTC is about to “blast past the level of $10,000”.
The analyst explains that BTC being far above its 50-, 100-, and 200-day moving averages suggest that bulls currently have their hand over the cryptocurrency wheel, opining that these technical levels “define the trend.” To back his call with fundamentals, Aslam looks to the fact that institutional investors are diving into the cryptocurrency space at a rapid pace.
As reported by Blockonomi previously, 33,677 Bitcoin futures contracts, the cryptocurrency vehicle of choice for many institutions, were traded on the CME on May 13th, amounting to 168,385 paper BTC. And according to a CME email obtained by The Block, “May is shaping up to be the strongest month ever for CME Bitcoin Futures.”
Popular Twitter analyst “Filb Filb” also believes that $10,000 is inbound. In a TradingView analysis published on Wednesday, Filb noted that the aforementioned bout of FOMO, a bullish technical indicator, and the fact that Bitfinex shorts are coming under pressure to cover all lend to the theory that BTC could soon cross $10,000.