At some point, we have all experienced the FOMO of Bitcoin. Perhaps it is due to the fact that there simply aren’t many left. That will only ever be 21 million coins created, with millions of them already being lost forever. Another reason could be that we have all been told the story about how Bitcoin and even crypto will cause the largest transfer of wealth the world has ever seen. We have all seen the predictions of Bitcoin’s price someday going to $100k, $400k, and even over $1 million. We are lucky that we know the real secret of its value, and therefore we are trying to accumulate as much as we possibly can before the world wakes up to the fact. All of these and a variety of other factors can cause us to feel extreme FOMO when it comes to buying Bitcoin and sometimes results in us investing too much.
The Bitcoin market is an industry that is always looking ahead. What are the next hurdles that we will face, and what bullish things are on the horizon? With that mindset, today we will be taking a look at the key reasons why you may be soon feeling extreme FOMO when it comes to Bitcoin.
Banking Collapse
The biggest news story by far this year has been the banking collapses. What started in the USA, quickly spread around the world. While the contagion in the US seemed to be put on hold for the time being due to funds being backstopped by the government. With that said, there have been strong rumors that this is only the beginning. That the true fireworks are about to begin.
When banks first began collapsing last month, in the span of a week Bitcoin’s price soared from $19k, all the way up to $29k. Not only did the price change, but more importantly it turned the market mood bullish. While people’s funds were being locked, and learning that the money in the bank isn’t theirs. That is when people learned what Bitcoin’s real value is.
If further banks begin collapsing, people around the world will get a crash course on Bitcoin and will need to move quickly. A stampede rush toward BTC isn’t out of the question. This is a situation that everyone needs to be paying very close attention to.
Balaji’s $1 Million Bitcoin Price in 90 Days Bet
While the banking collapse has been the top news story recently, another story has captured the minds of Bitcoin and crypto enthusiasts. Balaji Srinivasan, former CTO of Coinbase, accepted a bet where he was predicting that Bitcoin’s price would reach $1 million within 90 days.
Even for the most bullish of us, this prediction took us by surprise. While many people doubt the validity of this bet for obvious reasons, it is fun to think about. If banks do continue to collapse if the US dollar goes into hyperinflation, if people can’t access their money. All of these things could once again cause a rush toward Bitcoin.
There are approximately only around 70 days left in this bet and Bitcoin’s price is still hovering at $28k for the last week. However, if there is one thing we know about Bitcoin, it is that once it moves, it moves very quickly. Perhaps even Balaji doesn’t expect its price will reach $1 million in that timeframe. He has mentioned that he hopes that this will be a wake-up call for many people to see what is happening. The alarm has been sounded and they need to escape to Bitcoin while they still can
US Government Attacking Bitcoin and Crypto
In recent weeks the US government has come out swinging against Bitcoin and the cryptocurrency industry. Through “operation chokepoint 2.0,” they are rumored to be attempting to cut off access to the on/off fiat ramps to crypto exchanges. They may not be able to ban crypto, but they can make it much harder for the average user to have access to it.
This situation tells me two important things. The first is that the government and the US are in a difficult situation. Perhaps they are taking finally taking action after the FTX fraud because not only were they embarrassed, but the dollar and banks are not going smoothly.
The other thing is that Bitcoin has officially made it. It has grown to a point that it is officially a threat to the dollar and government power, and cannot be ignored any longer. They are trying to make up for lost time and are attacking the industry with everything they have. Always remember that this has always been in the cards for BTC.
The Bitcoin Halving
Finally, we have come to the Bitcoin halving. Next year the Bitcoin issuance rate will once again be cut in half. Causing the inflation rate to drop, and for the asset to become even more scarce.
Traditionally Bitcoin has always had 4 cycles, which is set off by the halving. The first 2 years tend to be bullish and that is when we see record prices. In the last two years' prices retrace and the market is bearish. The next halving takes place, and the cycle repeats once again.
The most recent halving took place in 2020. A few months beforehand the price of BTC dropped to $3,500 after the Covid crash. However, the hype leading up to the halving caused the price to go up to $10k. We then saw a few months of sideways price action, before the price began to explode toward the end of the year. Eventually reaching a new all-time high price of $69k. From its March price low of $3.5k to its all-time high of $69k in November 2021, the price increased by more than 20x.
With the price currently at $28k, even if Bitcoin would perform only half as well this time around going up by only 10x. That would still result in a price of nearly $300k. There are many theories about how the last bull cycle was cut short prematurely by a variety of artificial factors. This means a stronger bull cycle this time around isn’t out of the question.
While it’s not guaranteed that any of these will affect the price of Bitcoin. One thing is for certain, it will definitely be interesting to watch and see what happens.
How about you? What has you feeling FOMO about Bitcoin?
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