Bitcoin, the world’s leading digital asset, has seen a decline from its peak of $99,531 on November 23rd, now trading at the $92k to $93k level. Many are speculating that this marks the end of its historic price run. However, CryptoQuant CEO Ki Young Ju believes that the current price action of the alpha coin is not a cause for concern.
Ki Young shared on Twitter that Bitcoin’s retail investors are not yet experiencing FOMO (fear of missing out). He noted that the current retail action does not show signs of excessive excitement or panic. Despite the price dip, there is still a surge of trading activities across various markets for spots, futures, and exchanges.
In a Twitter post on November 26th, Ki Young argued that BTC retail investors are not feeling the FOMO yet. Market indicators suggest a neutral market sentiment, a position that has been consistent since April when Bitcoin was trading at $64,000. During the previous Bitcoin bull run, retail FOMO peaked in January 2021 when the asset was trading over $30,000, leading to an all-time high of $69,000.
Although Bitcoin has tested the $100k mark multiple times in recent weeks, market observers believe that retail investors still need to heavily invest. QCP Capital attributes the recent price dips of Bitcoin to the macro environment. Factors such as the possible release of economic data like FOMC minutes and the PCE report, as well as Bitcoin being overbought following the US elections, are putting pressure on Bitcoin’s push towards $100k.
Despite these challenges, QCP Capital reassures that sentiment for digital assets remains bullish and there is no immediate cause for concern. On-chain data shows millions of USD liquidated in the last 24 hours and $438 million in ETF outflows recorded on November 25th.
According to CryptoQuant’s analysis, market participation remains strong with booming trading activities across all exchanges, markets, and assets. Retail investors are showing FOMO towards meme coins, particularly Dogecoin.
In conclusion, while Bitcoin’s price may have dipped from its peak, experts like Ki Young Ju and QCP Capital believe that the overall sentiment for digital assets remains positive. Retail investors are not yet in FOMO mode, and market participation continues to be robust. Despite the challenges in the macro environment, there is no immediate cause for worry, and the future outlook for Bitcoin and other digital assets remains promising.
Featured image from CNBC, chart from TradingView.
