FOMO – a very common phrase branded around in investing, an abbreviation for “Fear of Missing Out”.
How is this term defined? FOMO describes a form of anxiety that people experience when they feel something interesting or exciting may be occurring elsewhere, and they do not want to be left behind and “miss out” on the fun.
Why would investors be experiencing FOMO soon? Well, Bitcoin’s price has been in the $3-4000 region for a while, and many people would have been cautious about investing in fear that it may drop lower, decreasing the value of their potential investment.
However, with this week’s move above $5,000, individuals will start wondering if they should begin buying before they “miss the boat” and if we are about to embark on a new bull-run. It is also during these times where media coverage seems to increase, as do people’s curiosity and interest.
Which indicators suggest that this may well be occurring? Google’s searches for Bitcoin haven’t been this high since December 2017, right at the start of the biggest bull-run seen in cryptocurrency history. This suggests that interest in Bitcoin has indeed started gaining some newfound momentum.
This “reactive” vs “proactive” approach will never be the most successful and is often the reason why those who are brave during the worst periods of any bear market will always benefit much more against those who tend to jump back in at higher prices.
This week’s price surge still does not confirm any bull market has commenced; nevertheless, a couple more similar moves and a clean break of $6,000 will unquestionably deliver some serious FOMO to many investors.
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