Bitcoin’s recent surge to a new all-time high has sparked fear of missing out (FOMO) among investors, leading to speculation on how much higher it can climb before any obstacles arise.
Bitcoin’s unstoppable ascent has ignited FOMO across global markets, fueled by investor enthusiasm and a wave of favorable market conditions, according to Alexander Blume, CEO of digital asset firm Two Prime. Blume noted that following Trump’s election victory, both BTC and other risk-on assets have experienced a rally, reflecting widespread optimism for business and innovation-friendly policies.
Blume explained, “The market is largely anticipating pro-business tax cuts, reduced regulation, especially at the SEC [U.S. Securities and Exchange Commission], and increased government spending.” He added that until Trump assumes office, there are no concrete factors to dampen hope and speculation.
This positive sentiment has driven bitcoin, which Blume considers “a key indicator of global liquidity and loose money,” to reach new highs. Additionally, the broader cryptocurrency market has been “massively de-risked” now that a pro-crypto administration is in power. Blume also expressed optimism about the possibility of “real rules and fair regulation” in the upcoming term, given the control of the House and Senate.
Blume highlighted bitcoin’s strong performance as part of a long-term pattern, stating that it continues to follow its four-year parabolic pattern, with high returns typically following the U.S. elections and the four-year global liquidity cycle. This pattern has instilled confidence among investors, who now feel it is the right time to invest.
Blume emphasized that bitcoin’s surge over the weekend may have triggered FOMO, particularly among exchange-traded fund (ETF) investors who have been waiting for an entry point. He stated, “This weekend’s rally to 82k and now a new all-time high today likely creates a sense of FOMO for ETF investors who have been on the sidelines. Bitcoin is a momentum-driven asset in many respects, and the momentum is heading higher.”
During an interview on Schwab Network, Blume predicted that bitcoin could reach $100,000 by the end of the year, citing multiple catalysts. When asked about the potential for bitcoin to reach $100K, he said, “I think it’s gonna happen sooner than you think. I wouldn’t be surprised by the end of the year … There’s a slew of amazing things and I think $100K by the end of the year is definitely possible.”