Bitcoin FOMO is making waves as prices surge to $94,000, sparking excitement among traders. However, the looming Fed decision could alter this trajectory.
On Tuesday, Bitcoin (BTC) prices soared to a three-week high of $94,625 on Coinbase, marking a “much-needed rebound” that has traders re-engaging with the market. According to blockchain analytics firm Santiment, this surge has led to a significant increase in social media chatter, with many expecting further price hikes.
Bitcoin FOMO and Market Reactions
The rise in Bitcoin prices has not been without its fluctuations. After hitting the peak, the price retreated to $92,400, leaving analysts to speculate on the next move. Santiment noted that market trends often move contrary to small traders’ behaviors, which seems to be occurring in the wake of this recent peak.
Impact of the Fed Decision on Bitcoin FOMO
The impending Fed decision is a crucial event that could influence Bitcoin’s path. With an 88.6% probability of a 0.25% rate cut, according to CME Group futures markets, analysts are cautious. Jeff Mei, COO at BTSE exchange, mentioned, “Bitcoin is likely rallying on rate cut expectations, but predicting post-Fed meeting outcomes is challenging.”
The CME futures market also indicates a 21.6% chance of another quarter-point rate cut in January. Mei warned that any uncertainty about future rate cuts might negatively impact Bitcoin and the broader crypto markets, potentially inciting inflationary fears.
Analyst “Sykodelic” emphasized the difficulty in interpreting price actions leading into the Federal Open Market Committee (FOMC) meeting, predicting high volatility in the market.
Market Manipulation Concerns
Long-term Bitcoin investor “NoLimit” expressed skepticism about the recent price surge, labeling it “pure manipulation.” He suggested that the sudden spike to $94,000 appeared engineered, with thin order books and strategic market buys creating an illusion of organic growth.
“This is exactly how big players create FOMO to offload at better prices,” he noted, highlighting the abrupt stalling after the price hike as a telltale sign of manipulation.
As Bitcoin FOMO continues to grip the market, stakeholders eagerly await the Fed’s decision, which may either fuel or dampen the current enthusiasm. With potential rate cuts on the horizon, the crypto market stands at a pivotal point, balancing between optimism and caution.
