As we reported at Kriptokoin.com, Bitcoin recently exceeded $93,000, reaching an all-time high. This created great excitement in the markets. US President-elect Donald Trump’s promise to ease cryptocurrency regulations was a major factor supporting this rise. However, after this strong rally, investors are now carefully monitoring potential corrections that could be caused by social media hype.
Bitcoin ETFs and Market Support
One of the biggest factors that has triggered this rise in Bitcoin prices has been the massive inflows into Bitcoin ETFs. Just this week, ETFs have recorded a total net inflow of $1.9 billion. Such institutional investor inflows have reduced the supply of Bitcoin in the market, increasing demand and pushing prices even higher.
Along with these entries, technical analysis also suggests that Bitcoin’s current rally is still in its early stages. Analysts are noting that Bitcoin is currently in the early stages of a “Cup Handle” formation. If this formation is completed, the price will rise to $126,000.
The Effects of Social Media and FOMO on Bitcoin Price
On-chain analytics platforms like Santiment have been noting the intense Bitcoin discussions on social media. “$100K” predictions have skyrocketed on social media after Bitcoin hit new highs. But that kind of hype usually signals a short-term pullback. Historically, spikes in social media activity have been a sign that individual investors are quickly entering the market, creating a wave of FOMO (fear of missing out).
Santiment notes that during such periods of extreme optimism, experienced investors are generally cautious. High social media interest would be a sell or hold signal for experienced investors, as such periods of intense interest usually result in short-term corrections.
The Importance of Being Cautious
Bitcoin’s record-breaking rally presents great opportunities for investors. However, analysts like Santiment’s advice reminds investors to keep their cool. Excessive enthusiasm on social media can cause short-lived price peaks. Therefore, it is important to make strategic decisions with objective analysis without getting carried away by the market’s emotional movements.
The Bitcoin rally is both exciting and a time to be cautious. It is important to be prepared for these fluctuations, especially for new investors.
Follow us on Twitter, Facebook and Instagram, and join our Telegram and YouTube channel to stay up to date with breaking news !
