Last week, many best cryptocurrency news sites reported the situation about Bitcoin flirting with the $9,000 level for the first time in a year. This has led one of the major bulls of the industry, Fundstrat’s Tom Lee, to talk about the Bitcoin FOMO and cite data which suggest that the point of no return is here.
Data from Fundstrat has revealed that when the value of BTC crosses the $10,000 barrier, the Bitcoin FOMO blows the way. Labeled as the ‘Level 10 FOMO’, this represents the equivalent value at which Bitcoin has surged in the past.
For the ones of you who don’t know, FOMO is basically a shortcut for the “fear of missing out” which is one of the reasons more people are entering the crypto market and hence improving the price of Bitcoin.
— Adam Samson (@adamsamson) May 29, 2019
Then, the Bitcoin bull Tom Lee made an appearance in order to cool Samson’s willingness – but confirmed the conclusions drawn from the data. As Lee wrote:
“Actually the point of the chart is to say “real Bitcoin FOMO” probably starts when BTC exceeds $10,000, as that is a price level only seen 3% of all days… …Mathematically equivalent to exceeding $BTC $4,500 in 2017. Looking back, that price was a level that indeed triggered FOMO.”
Seeing the Bitcoin charts from 2017, we can see that $10,000 was a clear turning point – and a point at which the Bitcoin FOMO was increasing. However, Lee’s data fails to take some fundamental factors into account such as the launch of the CME Group’s Bitcoin futures which helped the rally big time.
Still, the full-blown Bitcoin FOMO mentioned by Tom Lee could become a self-fulfilling prophecy. Even though not everyone agrees with Lee’s numbers, the FOMO levels are definitely a hot topic on many altcoin news sites right now.
“Exceeding 4500 in 2017 was an ATH. As was anything above 1100 during 2017. Comparing them retroactively with a 3% metric is false equivalency. The real comparison for 4500 in 2017 would be btc @ ~77,000 today,” a user named @John Silvestro tweeted.
Other users have agreed with this skeptical take. One of them was a user called @Dumb Genius who also touched the Bitcoin FOMO topic, writing:
“Why wouldn’t Level 10 FOMO for this cycle be around $80K (4x the top of the previous cycle) similar to $4500 (4x of ~$1100)? Is Level 10 FOMO being front run by a factor of 8x? And if that’s the case, will the bubble top percentage of this cycle then be significantly higher?”
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