Bitcoin Blazes Above $38,000 As FOMO Takes Hold

January 7, 2021, by Cris
Bitcoin saw a relentless rally over the last weeks that has defied market expectations.
Bitcoin going up

After getting above the all-time highs at $20k, Bitcoin has shown no sign of a correction as institutional investors “Fear of Missing Out” (FOMO) continues to take hold.

Institutional platform Coinbase Pro saw a Bitcoin outflow worth more than $1 billion on Saturday, in a sign that big investors are buying in and willing to hold at these levels. Institutional investors usually buy the “over the counter” (OTC) market, which means they can make a large purchase directly from the exchange without influencing the spot price.

Bitcoin has now started 2021 with a 10% gain before stock markets and other commodities have even opened for business. The cryptocurrency is now getting real institutional interest and in 2021, these investors could have their analysts studying the altcoin market to find value.

Bitcoin saw a high of $38,740 on Coinbase and this could be a near-term top in the coin.

Litecoin On the Radar

Litecoin will be on many investor radars due to its relative price. Bitcoin has 18.5 million coins in circulation and there are growing fears over its supply if big investors hold the coin. Litecoin has 66 million coins in circulation, so it has around 4x the number of coins, but with a price that is a fraction of BTC.

Litecoin has been a big beneficiary of the Bitcoin rally and the move last week saw it trading above the key 2019 highs of $170. The coin led the market higher in the first half of that year before it fell back with a crypto market bear move. The lows have proven to be a great buying opportunity for the coin, which began as a hard fork of Bitcoin and shares similar security and technology.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.