Bitcoin on the Verge of FOMO-Driven Rally to Record Highs
Bitcoin Breaks $48,000 Mark, Eyes $50,000 Resistance
Bitcoin surged past the $48,000 threshold on Friday, marking a 13% jump over the previous week and inching closer to the crucial $50,000 resistance level.
ETF-Driven FOMO Rally to New Highs
Despite a remarkable 160% upturn in 2023 and sustained resilience in 2024, current interest in Bitcoin still lags behind the peaks witnessed in 2017 and 2021.
However, analysts at Bernstein believe that Bitcoin’s prime days are yet to come, as the ETF-driven market ignites fears of missing out and propels the cryptocurrency to new record highs.
Bitcoin ETFs as Price Catalysts
Bernstein analysts noted that Bitcoin ETFs are emerging as clear price catalysts for the cryptocurrency, with a significant decrease in outflows from Grayscale Bitcoin Trust and the influx of nearly $1 billion into new ETFs over the last two trading days.
This shift has notably improved market sentiment, and while the market swiftly responded to news of ETF approvals, it has yet to fully account for the inflows into funds and the impending scarcity of supply.
Shift in Investor Sentiment
The analysts observed that the money is still flowing from the ‘believers,’ who have found an easier way to access Bitcoin in their broker accounts through ETFs, while the disbelievers remain hesitant.
It appears that initial interest in Bitcoin is coming from new investors who are eager to learn more about it, indicating a potential shift in investor sentiment.
Anticipated Bitcoin Rally Before Halving
Bernstein’s initial forecast projected a rally in Bitcoin’s value after its halving event. However, given the extraordinary success of the ETF launch and continuous inflow into ETFs, analysts now anticipate a significant Bitcoin rally to occur before the halving.
As a result, investors considering investment in Bitcoin mining companies are advised to select their preferred companies now and maintain their investments through the halving event in April 2024, with Riot Platforms and CleanSpark being Bernstein’s top picks in this category.
