Emily Walker
Bitcoin, the prominent cryptocurrency, has seen its price drop from $99,531 on November 23 to around the $92k to $93k range. This decline has led to speculations about the end of its previous bullish trend. However, Ki Young Ju, CEO of CryptoQuant, believes that the current price movement is not alarming.
In a tweet, Ki Young noted that retail investors are not yet exhibiting “FOMO” (fear of missing out) behavior, suggesting a lack of panic or unrestrained enthusiasm in the current market.
He further explained that there is still a notable level of trading activity across various markets, including spot and futures.
Retail Investors and Meme Coin Hype
In a previous tweet from November 26, Ki Young highlighted that retail investors in Bitcoin are not currently feeling the pressure to invest due to market excitement. He mentioned that the market sentiment remains neutral, consistent since April when Bitcoin was valued at $64,000.
#Bitcoin retail investors aren’t in FOMO yet. pic.twitter.com/DiGcChyNWt
— Ki Young Ju (@ki_young_ju) November 26, 2024
The last significant Bitcoin price surge saw FOMO peak in January 2021, when prices exceeded $30,000, leading to an all-time high of $69,000. Despite recent attempts to reach the $100k level, analysts believe that retail investors are still not fully committed.
Price Fluctuations and Economic Influences
QCP Capital indicates that Bitcoin’s recent price declines are influenced by the broader economic conditions. Various factors are hampering Bitcoin’s movement towards the $100k mark.
They noted that potential economic reports, such as FOMC minutes and the PCE report, are contributing to this pressure, along with market adjustments following recent price surges post-U.S. elections.
Notably, QCP Capital suggested that the current market situation does not warrant worry, as the sentiment around digital assets remains optimistic.
Recent data shows significant liquidations in the past day, with about $438 million flowing out of ETFs on November 25.
2/ No immediate catalysts: With U.S. holidays approaching and major economic data like tonight’s FOMC minutes and tomorrow’s PCE report, the market lacks momentum to push #BTC toward $100K. #BTC was extremely overbought post-election, making a cooldown inevitable.
— QCP (@QCPgroup) November 26, 2024
Ki Young Ju affirmed that market activity continues to thrive. He pointed out that there is robust trading across all platforms, while retail investors appear to be chasing FOMO in meme coins, notably Dogecoin.
Featured image from CNBC, chart from TradingView