Despite cryptocurrencies continuing to struggle throughout 2018, one finance executive thinks that a "global" FOMO rally is close to occurring.
Bitcoin on the Verge of "Global Breakout," Rally Driven by FOMO
After experiencing a year-long bull market in 2017, irrational exuberance surrounding Bitcoin and other cryptocurrencies peaked in late December, and the emerging asset class has since struggled to reach new highs in the face of an ongoing nine-month-long downtrend and bear market.
However, Nigel Green, chief executive officer and founder of "the world's leading independent international financial consultancy" deVere Group, believes that Bitcoin is "on the verge of a true global breakout," that will be entirely driven by the fear of missing out (FOMO).
While speaking at the blockchain island nation of Malta's official blockchain conference, the DELTA Summit, deVere CEO Nigel Green suggested a new FOMO rally will kick in after Bitcoin breaks out of its nine-month downtrend, reports Verdict.
"Bitcoin and other cryptocurrencies are, I believe, on the verge of a true global breakout. This is largely due to 'FOMO,' the fear of missing out," he said, adding that "adoption is increasing all the time."
"This is evidenced not only in the financial sector, in which major banks are increasingly looking at blockchain and crypto, but with big names within the tech and retail sectors too," Green continued.
Bitcoin has been trading around $6,500 in recent days, after making repeated lower highs throughout 2018 and painting a descending triangle on price charts – typically a bearish continuation pattern.
Bitcoin, however, has been making higher lows in recent weeks, which typically indicates a reversal may be mounting. Many prominent Bitcoin bulls and cryptocurrency experts are also seeing signs that an end to the bear market is near.
Bitcoin Bull Rally Coming, But Not a Repeat of 2017 Parabola
While the 2017 FOMO rally was driven by retail investors hearing about Bitcoin through social media and word of mouth for the first time, Green believes the next FOMO rally will be driven by institutional investors, who might find it "difficult to catch up."
"I feel that there's a growing sense amongst institutions that unless they embrace this sector, their competitors could move way out in front and they might find it difficult to catch up. This is especially true as the public – their customers – are increasingly eager to explore the opportunities themselves," Green elaborated.
Green thinks that the rally will begin "before year-end," but won't match the "stratospheric rise in cryptocurrency prices that we experienced at the end of 2017." Regardless of how much the price rallies, Green believes that in time there will be widespread acceptance that cryptocurrencies like Bitcoin and Ethereum are the "future of money."
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