As we are heading closer to 2025, one of the strongest psychological factors – Fear of Missing Out (FOMO) – might send Bitcoin soaring to a possible $100,000. This is how FOMO in conjunction with market trends could be the reason behind such a price rise.
FOMO is a concept whereby investors panic, afraid that they are missing out, they invest in stocks, and hence exert pressure that leads to the increase in prices. In the case of Bitcoin, FOMO has in the past been a major factor attributing to the higher prices. In this case, when investors observe other people making huge amounts of money, the need to join the rush can be irresistible and this in turn becomes a cycle of more buyers coming in and escalating the price level.
Several factors could lead to the increased growth of this cryptocurrency to $100,000 by 2025, all of which are set to create immense FOMO from both institutional and retail investors.
One of the key areas that needs to happen is the approval and emergence of Bitcoin ETFs, especially in developed markets such as the United States. According to the analysts at Bernstein, the Bitcoin ETFs have the potential to hold approximately 5% to 7% of the total circulating number of bitcoins by 2025. Besides, such institutional adoption not only validates Bitcoin as a legitimate financial asset class but also opens a wave of fund inflows that in turn propel the price of Bitcoin.
Speaking technically, the price chart of Bitcoin shows that it is ready to go higher and reach $100 000. The Bull Pennant pattern, which has a consolidation phase and an upward breakout, suggests that Bitcoin is likely to increase from current price levels. Previously, similar trends pointed toward a raise of prices significantly, which supports the bulls and involves new consumers in the market.
One of the main values of bitcoin is that it is a digital currency with a limited supply of 21 million coins. It received that the Bitcoin network is halving every four years, and this implies that the amount of new bitcoins entering into the market is slowly reduced since the miners receive a reduced quantity of bitcoins for mining the new blocks. Based on the most recent halving in 2020, the current bullish cycle is defined and if another halving occurs in 2024, supply will be restricted resulting to high price hikes due to high demand. This scarcity together with the ever increasing demand, especially from institutional investors, could be the perfect recipe for a price hike
Because people begin to fear that they missing out on something great due to the rising price of Bitcoin to levels such as $60,000, $80,000, and $100,000. Small investors, who played a significant role in previous Bitcoin hikes, could be a flood back into the market, thinking they might miss the next big move. New entrants into the market due to FOMO could cause a self-fulfilling prophecy whereby the high prices lead to more purchases, driving prices up further.
Thus, it can be considered that there are certain possibilities for Bitcoin to reach the level of $100 000 per coin by 2025, but it is necessary to note potential threats. It is imperative to understand that the cryptocurrency market is highly unpredictable and may be affected by factors such as regulatory shifts, macroeconomic fluctuations, or technology issues that may alter this growth pattern. However, the very same FOMO that pushes the prices up can cause corrections and drops, as history after previous cycles has shown.
The institutional buy-in coupled with technical patterns denoting bullishness, backed by the scarcity factor due to halving and the sheer force of FOMO could take Bitcoin to $100k by 2025. However, getting to this milestone comes with a lot of volatility and uncertainty for traders make it an exciting and worthy asset to keep an eye on during the next bull run.
Of course there is always the caution that prospective fund initiates should enter into this market as there is always a risk and return associated with investing into this fast growing field.
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Disclaimer!! The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
Riz-A is a seasoned blockchain content writer with a passion for demystifying complex concepts and making cutting-edge technology accessible to a broader audience. With years of experience in the blockchain and cryptocurrency space, Riz-A has a proven track record of creating engaging, informative, and thought-provoking content.