Bitcoin: How the “Fear of Missing Out” Still Lingers
Will the granddaddy of cryptocurrencies defy the prevailing sentiment?
by Bob Stokes
Updated: November 29, 2022
Back on March 24, The New York Times said:
Everyone Has Crypto FOMO
Of course, FOMO stands for the "fear of missing out."
Mind you, that headline published just weeks after the now failed crypto-exchange FTX advertised during the Super Bowl telecast. Other crypto exchanges -- crypto.com, Coinbase and eToro.com -- also ran Super Bowl commercials. The Wall Street Journal quipped that the telecast should be called the "crypto Bowl."
Also, on the March date of that NYT headline, Bitcoin was trading at $39,166.
At that time, the cryptocurrency was already down 43% from its Nov. 2021 all-time high of $68,789.
By November of this year, Bitcoin had hit a low of $15,480 -- a whopping 77.5% decrease from last year's all-time high.
By this time, of course, many crypto investors wished they had "missed out" -- on Bitcoin's dramatic decline and the FTX collapse, that is.
Yet, even after the big Bitcoin drop, the "fear of missing out" remains. Here's a Nov 22 Forbes headline:
Cathie Wood's Ark Buys $60 Million In Bitcoin, Crypto Stocks After FTX Collapse Even As Analysts Fear Contagion Risk
This bold investment move goes against at least one measure of sentiment. As the article notes, JPMorgan's latest client survey reveals that about 82% of respondents expect crypto prices will fall at least another 10%, including about 28% opining prices will plummet at least 50%.
If Bitcoin rises strongly from here, it would not be the first time that an asset class has bucked the prevailing sentiment. On the other hand, there's the old saying about trying to catch a falling knife.
Bottom line: Only time will tell if Ark's bold investment turns out well or not.
The main method our monthly Global Market Perspective uses to analyze Bitcoin is the Elliott wave method.
Indeed, our November issue, which published Nov. 4, said this about Bitcoin:
Sideways to lower in the near term
Of course, the cryptocurrency has trended lower in November and our new December Global Market Perspective -- which publishes Dec. 2 -- provides an important Bitcoin update in the "Cryptocurrency" section.
Follow the link below to get our Elliott wave analysis and commentary on Bitcoin and other cryptocurrencies in the new Global Market Perspective.
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Every month, EWI's team of global market experts deliver their analysis and forecasts for 50+ markets worldwide (U.S. included) -- all in one convenient publication.
Global Market Perspective offers serious reading for the serious investor (GMP was once exclusively available to institutional subscribers).
The new December Global Market Perspective publishes Dec. 2.
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