As much as “FOMO” is a meme in the Bitcoin (BTC) community, the fear of missing out seems to be an entirely real phenomenon. It’s been just a day since the cryptocurrency rocketed past $10,000, and data is already revealing that more money (and investors) are already flooding into these markets, ready to throw their hat into the crypto ring.
This renewed interest is, in the eyes of some optimistic commentators, are a clear sign of new highs to come.
Bitcoin Volumes Surge
Markets are meant to be closed on Saturdays. Only from Monday to Friday is the stock market open, and many businesses too. But, Bitcoin is an entirely different ball game.
Spotted first by analyst Joe McCann, Saturday saw BitMEX register its highest volume day in its history — crazy. The pairs on the mercantile exchange, known for its offering of 100x leverage (1% move can liquidate your position), traded over $8 billion worth of value — accounting for 10% of all volumes registered on Coin Market Cap.
Considering that Bitcoin has already seen some zany days this year, the fact that this most recent rally, which brought BTC from $9,200 to around $10,400 in a day’s time, resulted in huge volumes only corroborates the validity of this uptrend.
FOMO is Materializing in Stablecoins
This isn’t the only sign that “FOMO” is materializing in these markets. As spotted by crypto analytics service ViewBase, there has been “large inflows of stablecoins into exchanges.” More specifically, within an hour’s time following the move past $10,000, just around $25 million worth of U.S. dollar-backed coins (TUSD, USDC, USDS, etc.) found their way onto exchanges.
Such large inflows directly suggest that investors, presumably large holders of cryptocurrency, are looking to reallocate capital back into this space as a result of the recent uptick.
Simultaneously, Tether has begun to issue USDT en-masse. The number of the stablecoin now in circulation has hit $3.8 billion — an all-time high. In a related tidbit of news, USDT has begun to break its peg to the dollar, starting to trade at $0.994 due to high sell-side volumes. This implies that investors are dumping the stablecoin for Bitcoin, Ethereum, and other large-cap digital assets.
In spite of all this, there are some that believe Bitcoin will soon top out. Per previous reports from NewsBTC, Josh Olszewicz, Brave New Coin analyst, pointed out that a logarithmic pitchfork pattern, which stretches back to 2016, suggests that BTC will likely find trouble breaking past $11,464.
A pitchfork, for those unaware, is a technical analysis method that uses parallel lines to determine trading ranges, resistances, and supports. The upper band of Olszewicz’s pitchfork, depicted below, has acted as resistance during 2016’s rallies and as a negative catalyst during November 2018, which pushed BTC to $3,000.
If history is of any indication, Bitcoin will have trouble breaking past this key trend line yet again.