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Bitcoin Price Rally Likely Due to Bullish Sentiments Than “FOMO” Belief – Crypto News

Published

1 year ago

March 1, 2024

Dripp

Bitcoin price rally has cemented beliefs about the mainstream acceptance of digital assets. Previously, many termed the rally to be a result of investors trying to stay away from the fear of missing out. However, Goldman Sachs’s head of asset allocation research says that the rally in Bitcoin prices is largely due to bullish sentiments and a macro backdrop rather than a pure FOMO play.

Bitcoin Price Rally is not a FOMO effect

In an interview with Yahoo Finance, Goldman Sachs head of asset allocation research Christian Mueller-Glissmann expressed his views on the Bitcoin price rally. In the interview, he says that the analysis of the current macro backdrop suggests that the risk appetite among investors is quite high. Bullish sentiments have helped keep the prices of Bitcoin afloat. In such a situation the price rise has likely happened due to the upbeat investor outlook.

Glissmann does not negate the chances of a FOMO buying in the scenario, however, the factor has much more likely entered the picture only towards the end of the trend. The rise in Bitcoin prices has been influenced by many factors that have helped in the ascending trend.

Bitcoin Supply-Demand Shows Imbalance

The demand for Bitcoin ETFs has been the prime reason for the rally in the prices of the OG-crypto currency. However, a supply shock has further contributed to the higher prices. Right now, there is a surplus of demand and a deficiency of supply regarding Bitcoin. When there is a shortage of the original coin, it is more likely that investors will pay astronomical prices for a tiny percentage of asset exposure.
The dynamics of supply and demand for Bitcoin will also be altered by the impending halving of the cryptocurrency. The payout for mining new blocks will be half after the having. The supply of Bitcoin is probably going to remain less than the demand in such a scenario. After the halving, prices should see a significant surge if these sentiments hold.

BTC Prices Right Now

BTC’s price has risen above $63,000 in the past and is currently just a little bit below its 27-month-old top of $68.7K. The increase implies that traders are starting to show more interest in joining the Bitcoin bandwagon. As of the time of writing, the price of Bitcoin stands at $61,998.62, up almost 1% from the same point the previous day. It is safe to say that, considering the recent increase in the price of Bitcoin and the jump in interest in ETFs, the upward trend may continue for some time to come. Wall Street investors are flooding Bitcoin ETFs with money because Ethereum and BTC have higher returns on investment (ROI) than other assets including gold, oil, stock exchanges, and other assets.