Bitcoin reaches record price! Is FOMO the new investment risk?

Bitcoin reaches record price! Is FOMO the new investment risk?

The crypto market recently reached another notable milestone. Loud InvestX The current market cap is $3.42 trillion, after recording an increase of $91 billion in just 24 hours. Particularly impressive is Bitcoin's new record price, which has reached $111,999, approaching the $112,000 mark.

Additionally, the SPX6900 is showing strong growth of 12% and is nearing its all-time high. This correlation between the performance of technology stocks and the crypto market is highlighted by analyst Axel. He notes that breaking above the critical $112,000 level for Bitcoin could potentially trigger FOMO (Fear of Missing Out), which would lead to increased capital inflows.

Market movements and technical analysis

Although the TOTAL index is struggling to break above $3.43 trillion, analysts are closely watching the developments of Bitcoin and SPX6900. Both need to confirm their recent gains to avoid a period of consolidation. SPX6900 also needs to consolidate the $1.55 resistance level as support to continue the further uptrend. Failure in this area could result in a decline to around $1.25.

Another interesting point is that SPX6900 is considered the most accumulated token by large investors on Solana in the last 24 hours. This could reflect the increasing interest in this token. According to Sun.flow, technical indicators show that longer-term holders' MVRV Bollinger is pointing to resistance at $132,000, with a possible reach in August. The critical watch zone for Bitcoin is between $113,000 and $116,000 as this could be considered a sell zone for established investors, also known as “whales”.

The influence of FOMO in the crypto market

The rising prices in the crypto market have also impacted investors' FOMO behavior. HodlFM explains that FOMO describes the feeling of missing something essential, especially in the investing space. Historical examples, such as the gold rush of the 19th century and the dot-com boom of the 1990s, show how pressing this feeling can become. Tweets about successful Bitcoin investors further strengthen this effect.

FOMO can lead to impulsive actions and therefore risky decisions. It is an important emotion in the investment process that can be both rewarding, through price increases, and dangerous when wrong decisions are made. The function of market liquidity, particularly through monetary easing by the US Federal Reserve, is a key trigger for FOMO. Positive economic news, such as easing regulations in China, can also drive this dynamic.

Since the crypto market experiences intense FOMO moments, careful planning is required. Successful investing requires long-term strategies and discipline to resist the temptations of short-term trends. Emotional reactions should be carefully managed so that investors can concentrate on their long-term goals.