Bitcoin Hitting $10,000 Will Kickstart Mass FOMO, Quadruple BTC in Months: Fundstrat

Bitcoin Hitting $10,000 Will Kickstart Mass FOMO, Quadruple BTC in Months: Fundstrat

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 BTCs performance in the short to medium term.

Fundstrat’s Lee Bullish on Bitcoin

In a recent research note, posted by Financial Times’ Adam Samson, the firm’s head of research Tom Lee explained that the Bitcoin market is currently experiencing “Level 5” FOMO according to Fundstrat’s “Degree of FOMO scale. As seen above, this doesn’t mean that the cryptocurrency market has peaked though.

Fundstrat 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 companys analysts are known for using the Bitcoin Misery Index to determine overall investor sentiment and the markets overall direction.

Related Reading: Institutional FOMO to Drive Bitcoin Price Beyond $20,000 And To Unseen Heights

OnceBitcoin 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.

While Fundstrat has long had its eye on the $10,000 price point, its analysts never indicated a price target until now anyway.

In a recent podcast with Binance’s chief financial officer, Wei Zhou, Lee explained that once $10,000 is breached, all hell will break loose for the cryptocurrency market. This corroborates the aforementioned analysis of this nascent market’s “FOMO levels”.

Per CCN, which reported on this first, the Wall Street analyst stated that once $10,000 is breached, there will be a “fast and furious” move to $20,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping move.

Is $40,000 Possible?

While $40,000 seems miles away and it is many are sure that this price point is within Bitcoin’s grasp, even in the medium term. Analyst PlanB, known for his use of the stock-to-flow ratio (SF), recently explained that the impending block reward reduction will give Bitcoin a fair valuation of $55,000.

Per previous reports from NewsBTC, he explained that BTC abides by similar valuation rules than gold’s, in that you can use its inflation rate to determine a “fair” valuation. As it stands, Bitcoin has an SF ratio of around 25, implying an inflation rate of 4%. Once the halving hits, however, Bitcoin’s SF ratio will move past 50 to approach that of gold, giving BTC a lower inflation rate than most fiat currencies.

With there being a nice linear relationship between SF and the market valuation of an asset, PlanB suggests that Bitcoin would be fairly valued at $1 trillion, giving each coin a price of $55,000.

While $55,000 for each BTC seems irrational for most, PlanB writes that money from silver, gold, negative interest rate economies, authoritarian and capital control-rife states, billionaires looking for a quantitative easing hedge, and institutional investors will eventually flood into this space.

This in and of itself may seem like a pipe dream, but some are sure that this is likely, especially with the increase inhyperinflation,fiscal mismanagement, and speculators looking for attractive alternative investment opportunities.

Some have been even more optimistic, however, stating that $40,000 will be just the tip of the iceberg. In fact, many have looked to $250,000 or even $333,000 as long-term price targets. We’ll need to wait and see though.

Featured Image from Shutterstock

The post Bitcoin Hitting $10,000 Will Kickstart Mass FOMO, Quadruple BTC in Months: Fundstrat appeared first on NewsBTC.

09.06.2019 / 14:30 82
Bitcoin May be up 14.9% But Tom Lee Expects “Real FOMO” after $10,000 Bitcoin May be up 14.9% But Tom Lee
BTC is steady above $8,500, add 14.9 percent Prices in an uptrend but real FOMO is after $10,000 says Tom Lee Tom Lee is an ardent Bitcoin supporter.
Bitcoin Hitting $10K Will Spark ‘Real FOMO,’ Says Research Analyst Bitcoin Hitting $10K Will Spark ‘Real
As Bitcoin battles to reach $9,000, Fundstrat Head Analyst Tom Lee says that the real FOMO will kick in when Bitcoin reaches $10,000. Bitcoin FOMO
$10,000 Bitcoin Price Key Level To Trigger Widespread Public FOMO $10,000 Bitcoin Price Key Level To
Bitcoin and its recent parabolic run has everyone across the crypto market in shock and awe as the first ever cryptocurrency smashes through each
Fundstrat: Bitcoin (BTC) To Stage “Pretty Big Recovery” Starting In 2019 Fundstrat: Bitcoin (BTC) To Stage
Why Bitcoin Could Head Higher, According To Tom Lee Bitcoin (BTC) surged past $5,000 mere weeks ago, and Tom Lee, the head of research at Fundstrat
Bitcoin Will Recover Without ‘Mainstream Breakout’ in 2019, Says Fundstrat Bitcoin Will Recover Without
Fundstrat Global Advisors has published its 2019 outlook on the cryptocurrency market. The document suggests that positive incremental developments
Fundstrat: Bitcoin to Hit Between $20,000 and $64,000 by End of 2019 Fundstrat: Bitcoin to Hit Between
The team of financial researchers of which famed Bitcoin advocate Tom Lee is part of has some extra bullish predictions for Bitcoin’s end of 2019
Comments (0)
Add a comment
Comment on