SuperEx丨BTC futures price tops $100,000，Unstoppable FOMO!

#SuperEx #BTC #FOMO

According to Cointelegraph, on November 30th, the Bitcoin futures on the Chicago Mercantile Exchange (CME) once again surpassed the $100,000 mark on November 29th, reaching $100,200. This was the second time within seven days that it had broken through this milestone price.

Ben Carlson, an analyst at Ritholtz Wealth Management LLC, wrote an article titled “Is It Too Late to Buy Bitcoin?”, arguing that many people are now eager to invest in Bitcoin, often because the price has already risen significantly. They are influenced by the Fear of Missing Out (FOMO) emotion and have developed a psychology of blindly chasing the rising price.

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Ben Carlson said, “I can calculate the motions of heavenly bodies, but not the madness of people.” This sentence perfectly sums up the current situation of the BTC market. Even though BTC briefly dropped below $93,000 a few days ago, the market didn’t panic. Instead, there was a unanimous cry of “a pullback is an opportunity to get in”, clearly indicating that the FOMO emotion has completely taken over the market.

From a market perspective, when the price of Bitcoin once again broke through the $100,000 mark, the market’s reaction to this event far exceeded expectations. Both institutional investors and individual retail investors have been swept up by the rising atmosphere of the market, and waves of “chasing the rising price” trends have continued unabated. The FOMO emotion is driving investors into the market as they are afraid of missing out on this possible wealth feast.

Data performance: A sharp increase in market trading volume

According to Glassnode’s data, in the past two weeks, both the spot and futures trading volumes of Bitcoin have hit new highs. The total amount of open interest in BTC futures on the Chicago Mercantile Exchange has climbed to nearly $17 billion, indicating that more and more funds are pouring into the Bitcoin market. Meanwhile, on-chain data shows that wallet activity has increased significantly, and the number of newly created Bitcoin addresses has also shown a leapfrog growth.

The enthusiasm of retail investors for the market is particularly evident. After the futures price broke through $100,000, social media platforms such as Twitter and Reddit were filled with cries of “BTC to the moon!”, and in some trading forums, “leveraging up to chase the rising price” has become a hot topic of discussion.

Compared with the bull markets in 2017 and 2020, behind the current rise in the price of Bitcoin, the influence of institutional investors is more prominent.

1. ETFs boost market sentiment

Earlier this year, the U.S. Securities and Exchange Commission (SEC) approved multiple applications for Bitcoin spot ETFs. This has opened the door for traditional investors to enter the crypto market and made it possible for more funds to flow into the Bitcoin market. According to Bloomberg, since the approval of ETFs, the relevant funds have cumulatively attracted more than $40 billion in capital inflows.

2. Layouts by giants fuel the boom

The in-depth layouts of traditional financial giants such as BlackRock and Fidelity in Bitcoin have further strengthened market confidence. Taking BlackRock as an example, the launch of its Bitcoin ETF has not only become the focus of market attention but also attracted the participation of a large number of pension funds and institutional investors.

3. The boost from global economic factors

Meanwhile, the macroeconomic environment has also provided support for the rise of Bitcoin. Inflationary pressures, the decline in the purchasing power of the U.S. dollar, and geopolitical uncertainties have prompted more and more investors to regard Bitcoin as “digital gold” or a means of value storage, further strengthening its position as a safe-haven asset.

Regarding whether Bitcoin can continue to break new highs, there are significant differences in market views. Some bulls believe that with the continuous inflow of institutional funds and the continuous expansion of the decentralized finance (DeFi) and Web3 ecosystems, Bitcoin still has significant room for growth in the future. Analysts generally believe that if Bitcoin stabilizes above $100,000, the next important resistance level will be at $120,000.

Meanwhile, the bears remind investors to be vigilant about possible pullback risks. The overbought state of the market and the extreme FOMO emotion may lead to intensified price fluctuations in the short term.

Of course, regardless of how the short-term price fluctuates, industry insiders generally believe that the long-term value foundation of Bitcoin remains solid. As the world’s first decentralized digital currency, Bitcoin’s potential in combating inflation, borderless transactions, and financial innovation remains its core value.

Summary

The breakthrough of Bitcoin futures price above $100,000 not only marks a new historical high in the cryptocurrency market but also demonstrates its status as an important part of global assets. Driven by both institutions and retail investors, Bitcoin is ushering in another important growth period. However, investors also need to remain rational and be vigilant about the risks brought by market fluctuations. In the days to come, whether Bitcoin will continue to break upward will remain one of the topics that global investors are most concerned about.