Topic: Bitcoin ETF Approval was a FOMO movement (Read 199 times)

FOMO on what though? ETFs only affecting US people. Rest of the world can't get in on it.

Rest of the world who wants Bitcoin can already get some anyway.

What was the thing to miss out on? Not ETFs. Not Bitcoin... what?

I think it's normal for an ETF to be a fomo because everything related to bitcoin has a reaction to value. and it is a habit that gives retailers reason to act in the market. Other institutional funds that apply ETF will also go with it and they cannot ignore this fomo. I suspect this is the reason the SEC did a “magic trick” on their twitter account. Lol, maybe another month there will be other pumps and bitcoin > 50k$, fomo signal before halving

after the ETFs launched.. the price corrected down closer to this cycles value with less speculated premium

the FOMO is ofcourse the fear of missing out on the discount before the late 2024-early 2025 value rise thus also pushing a premium rise to reach a new ceiling ATH in the next cycle. whereby after its ATH premium ceiling pump, the late 2025 correction will see a new value bottom, which should not go below $70k(speculation of old patterns)

meaning it is a FOMO season.. fear of missing out on the last chances of cheap coins before the pump above $70k and beyond

Yes but we also have to consider the strategy of "Buy the rumour, sell the news".

There was great expectations that an ETF approval would pump the market so there
was indeed FOMO but there were also those who bought low to sell high when the
"official" announcement was made.

This action will most likely happen with the halving too!

...and like everyone else I didnt read that wall of text, the thread title is enough.

My assumption they thought the "official" ETFs acceptance was a prank, so they did otherwise when SEC claimed their social medias got hacked.

The next FOMO is Bitcoin halving, last two weeks before halving begin, Bitcoin price will increase and when halving happens, there's will be sudden dumps. People might think it's the the highest Bitcoin price on the fourth halving, but the real new ATH will happen in 2025.

It is basically about "Buy the rumor, sell the news" and we see it with other rumor, other news, not only with Bitcoin Spot ETFs.

People thought this time will be different but again, this time they have to review an old lesson, not different at all. I only want to say, Don't blame it on whales.

People lost money, even temporarily, because they ignored basics of market psychlogy cycle and as said, believe in narrative "This time is different".

That's not a mistake if someone bought Bitcoin at 45K value. You are potentially always safe if you buy bitcoin that's lower than its all-time high price. The mistake was that they bought Bitcoin when its price was one of the highest at the moment and most importantly, this wasn't associated with halving and it wasn't a post-halving episode.
There was such a big hype about potential ETF approval that it was only logical to buy Bitcoin immediately once ETF was approved. Imagine, the price went crazy with the potential of approval because BlackRock was involved. What would an average person expect the situation after approval? Skyrocketed Bitcoin prices for sure. It was just a very unlucky result for many people and we can't say here someone made a mistake or not. Trading involves luck and this is the moment where people were unlucky.

The initial post is too long for me, I only read it briefly.
Every positive news has a FOMO effect, I believe that the approval of the ETF only encouraged individual small investors to enter Bitcoin, without any special analysis and familiarization with Bitcoin. At least that's my conclusion based on some previous experience on Forex. Since nothing significant happened, many of them left their positions with an acceptable loss.

I have agree opinion with OP about ETFs bitcoin spot approval was fomo moment only looking bitcoin price progress not significant to the higher price, get FOMO awhile after ETF approval announcing and bitcoin drop drastically more than 20% since highest price above $47k. Bitcoin still stable on lower price right now around $42k after few weeks later ETF approval and not give positive viewed how bitcoin will bounce more than last highest price to $47k.

Its not about long or short term effect after ETF bitcoin spot approval but without few days later after approving bitcoin price drop drastically and behind this approval I believe have manipulation how to make whales easily to make many people panic for selling bitcoin. Have waiting until several months later for ETF approval effect or there are not any significant positive side after SEC ETF approval.

I am one of the many Bitcoin enthusiasts who are hoping that with the approval of ETF the price would skyrocket and would easily reach a new ATH and maybe even go beyond $100K. Alas, we are so disappointed as the price came down below $40K, though as I am writing this it is already back at around $42K. The ETF approval then became a "sell-the-news" kind of thing and it was not enough to hold the line and push BTC to the moon. Now, analyzing what happened, I also realized that it is still too early to conclude on ETF so I am giving it at least one year and from there on we can see clear patterns.

A big post which I do not want to read and still I will reply to you based on your topic. Bitcoin ETF was a game these financial institutions used for their gain. There are a few questions that need to be asked. The first is why suddenly all Bitcoin ETF applications got approved whereas they were not earlier. A lot of changes were made and those changes do not relate to Bitcoin or its way of its existence. Centralization was the point why Bitcoin came to existence and with ETF they made it a centralized entity as Bitcoin is not being paid in satoshis to those who are investing in ETF. They are only getting a piece of paper that tells them how much satoshi they have on behalf of those financial institutions. It is a game of authority and it will not live for long.

Actually we didnt really anticipate or did expect about ETFs and other stuffs that we do have before on which the market could move out without needing those things. It did really just turn out that
institutions and government had already touched up this market and this is why people or crypto enthusiast are already that expecting something out of those news and other fundamentals
on which it would really be just that normal that they would really be able to have those assumptions basing up on what are the things that could happen into this market. This is why it would really
be that best that you should really know on how to make that sudden adjustments, it is really just that it would really better that you do have back up plans and
whatever things that you are really that dealing on with.

Another fact is that after the Bitcoin ETF, Grayscale appeared which sold its Bitcoin holdings so that at the same time Bitcoin showed more massive sales plus some who were waiting for ETF approval took advantage of the opportunity to take a little profit. Then as January decline continued, it also provided ample opportunities for institutions that already had access to purchase Bitcoin in the amounts they desired. We are back above $40K and as a hodler I am not too panicked seeing the decline that occurred in fact this price dumping moment makes it very necessary to take a long position.

In this case, it is clear that people are committing fomo without having a well thought out plan and not doing much research on the Bitcoin market, which has been like this since the beginning of the cycle. As a result, those who panic and think they will never see a price above $40K again are wasting their time.

There is always something to lose due to the mindless news consumption out there regarding Bitcoin rise after getting ETF approval. Not a few of them just hope that this moment will happen in an instant, but how the Bitcoin market works is difficult to predict.

People who think like this are short-sighted.

Investment must be in long-term vision and Bitcoin Spot ETFs are for long-term investors and needs time to show effects on the market. You can not say 2 weeks are enough to do something big and must know that with each Bitcoin market cycle, roughly lasts 4 years, it needs more than 2 bearish years to finish and prepare for a bull run that is only about 1 year.

Gold ETFs did not create any big price movements in 10 months before something massive blasts off. Now, you are wanting to see some big movements just after 2 weeks.

I was responding to OP's advice not to sell due to fear. I suppose that fear he is talking about is the same fear of missing out. I think one does not sell because he gets into FOMO. If he is caught in a FOMO then he is definitely buying not selling. If one is selling because of fear or panic then that is not FOMO. That is something else, probably panic selling or something.

In your context, yes, it's correct. FOMO happens regardless of the price movement. Even if the price is rising or falling, FOMO can happen.

You are not totally correct. You are correct because he posted this:


Bitcoin ETF Approval was a FOMO movement means people fear of missing out and that means they are buying and the price of bitcoin suppose to rise.

But you are wrong because some people can fomo and buy at high price while a coin begin to fall in price as more people are selling.

Such a long post; storytelling without a story. You could have posted your main point, the gist of your long story.

I think the FOMO was high during the days approaching the SEC's decision. During the decision day itself, the very day the positive announcement was released, the FOMO has already died down. There was instead a huge sell off rather than FOMO.

Selling isn't done during a FOMO. FOMO is used to refer to buying.

All of the Bitcoin enthusiasts were waiting for Bitcoin ETFs approval because they thought that Bitcoin will grow huge in value once the ETFs get approved by the SEC, and they weren't wrong because Bitcoin was trading at $46.5k to $47k values when those ETFs were approved and it even touched $48k value for short term. However, after a few days from the ETFs approval Bitcoin's price continue dropping again, and in 4th week of January Bitcoin's price dropped below $39k. Some people heavily invested in Bitcoin when its price was at $45k or above and now they regret about their investment decision. This thread is mainly for those people and for everyone else to learn from the mistakes that we make as investors and holders.

Well, I created this thread only to share some suggestions to those who invest in a coin when FOMO is very high. Most investors have anticipated that Bitcoin can reach $50k to $55k if the upward rally continues and those who were following such accumulated Bitcoin even when it's price was at $45k and above. Most of those newbie investors don't really understand that how crypto market works and that's why they regretted when Bitcoin's price dropped below $39k. Some of them have sold their Bitcoin holdings at loss in fear that they may lose more if Bitcoin's value drops below $35k while some still regret that why they have bought Bitcoin when it was pumping. They don't really understand what to do now because their PNL is negative within a few days and they get depressed when they see that negative PNL.

When a coin gets huge attention from everyone then it's value gets higher for short term due to FOMO but after a point when the coin can't grow more in value because most of the investors who bought it in hope to gain some profits in short term can't buy more of it, and the whales who have been holding it for sometime see no upward movement in market, then they start selling off their holdings which can cause drop in the value of a coin. When market is unable to move upwards anymore and buying orders reduce in number, then most of the investors or to be accurate whale investors place sell orders. When there are few buy orders and more sell orders then market won't move upwards and a few of those investors continue placing market sell orders which causes drop in the value of a coin. Those whale investors are already at profit during the selling of their holdings while the poor newbie investors are the ones who make bad investment decisions and face losses due to the fear.

In case of Bitcoin something similar happen this time, the market was moving upward but suddenly it started moving downward and those people who were holding Bitcoin for some time started selling their holdings in fear that the Bitcoin's price will drop to $35k or even below than that. I think most investors don't really understand that why Bitcoin's price dropped suddenly, and that's why most of them sold their Bitcoin holdings below $40k. I think this was simply a fear which caused the holders to sell off their holdings and the investors when saw opportunity again, they started placing buying orders. The Price of Bitcoin has since moved up to $42k after that crash and it's slowly moving upward once again. Those who sell off their Bitcoin holdings in fear should understand that sometimes the market can be manipulated by the huge sharks and whales and thus it's far better to keep holding your Bitcoin rather than selling it for a low value because of the fear.

Most of those newbie investors sell their holding due to the feat that they develop after reading online news sites or news on television. One should understand that the news isn't always accurate and most of the times it's the news that creates fear in the minds of investors and holders. It's better to read the news but don't follow it even if you see it's telling you something that's going to happen. The news is very manipulative and most people don't know that. That's why They sell in fear when they read a news report where a reporter says that Bitcoin's price was dropped and it can drop even further to blah, blah values. The weak hands when read such news reports or articles get even more scared and they try to sell their holdings as soon as possible to earn some profits or reduce further losses. They can't really see the whole picture because of the fear. They keep selling off their holdings and when the price moves upward again they regret that why they have sold their holdings. But, at that point they won't be able to do anything else other than regretting once again. I won't say that one should not read the news but it's better to read the news just to understand that what's happening in the market not to get scared of it and sell off in fear.

Bitcoin will surely reach it's ATH in this bull run and those who understand that will keep holding their Bitcoin even if they read 100's of such negative news articles. Make your mind that Bitcoin is going to grow huge in this bull run, aim for at least $80k to $100k at minimum if you really want to sell your holdings. Don't sell your Bitcoin anywhere below those values as it would be a very bad decision. Just read a few good speculation and prediction articles to understand that Bitcoin has potential to reach $80k to $100k or even more than that in this bull run. Just keep holding your Bitcoin even if it's value drops to $35k because within two years you'll be happy if you can hold your Bitcoin as it's value will most probably grow higher than our speculations and predictions. I would suggest holders to hold their Bitcoin for as long as possible to see some great profits from their holdings. Never ever sell off due to fear.