Market is driven by existing investors rather than newcomers in 2021
Hello my fellow bloggers! Many of us are waiting for new global FOMO into crypto market as it was back in December 2017. Sorry to disappoint you, but this is not what we see in 2021 yet. Let’s dive in and investigate.
December 2017 was quite a month for crypto. It was the first time ever when the world recognized crypto as a new market. Mass media all over the worlds were talking about Bitcoin. As a result, we saw a massive global FOMO into BTC. How many of us first came to the market in this glory days? The price of BTC hit incredible $20k followed by an all-season. Then long term holder gladly sold their crypto to newcomers at a high price and the marker changed the flags to bear land.
In 2021, we see the price reaching new all-time highs again. This time institutions are also supporting the bullrun. But do we see a retail FOMO these days? I’m afraid no. Glassnode co-founder published an interesting analysis backed with a good amount of data.
The chart above shows the ration between existing and new users on major exchanges (centralized ones). As you can see, in 2021 current market participants, rather than newcomers drive the price. In other words, there is no FOMO yet. The good side of it is that we see how market can grow with its internal resources. The best side of it that gains could be insane if FOMO starts later. The only real question is that if there will be FOMO this time. My guess is that we actually need to break through a psychological barrier of $100k first to get another wave of mass media coverage.
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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