Bitcoin Crossing $2T in Market Cap Triggers Retail FOMO. What Next?

Bitcoin’s (BTC) $2 trillion market cap has attracted a wave of recent consumers to the market, whereas seasoned merchants flip cautious, based on evaluation of on-chain knowledge by Glassnode.

BTC’s worth topped $100,000 final Thursday, lifting its market capitalization above $2 trillion for the primary time since Jan. 31, based on knowledge supply Buying and sellingView. Since then, the ship has steadied above the $2 trillion mark, with analysts calling for file highs on the again of an impending U.S. inflation knowledge later Tuesday.

It’s widespread for brand spanking new traders to affix the market in such bullish situations, and they’re doing so in massive numbers, hinting at retail FOMO, a crypto slang for “fear of missing out.” FOMO occurs when traders really feel compelled to purchase cash as a result of they see others making beneficial properties or concern that costs will rise considerably with out them. It causes traders to make impulsive purchases pushed by feelings moderately than cautious research.

“BTC Supply Mapping shows sustained strength in new demand. First-Time Buyers RSI has held at 100 all week,” Glassnode mentioned on X.

Glassnode’s supply-mapping instrument represents granular segmentation of various investor cohorts based mostly on their behavioral patterns.

First timers are outlined as wallets participating with the token for the primary time. The 30-day relative energy index of the first-time consumers holding at 100 via the week signifies robust shopping for curiosity from these members.

However, the exercise of different investor cohorts is not as encouraging, elevating the potential of a BTC worth consolidation or pullback.

Per Glassnode, demand from momentum consumers stays weak, with the 30-day RSI at 11. Momentum merchants capitalize on a longtime uptrend or downtrend, betting it’s going to proceed.

“Momentum Buyers remain weak (RSI ~11), and Profit Takers are rising. If fresh inflows slow, lack of follow-through could lead to consolidation,” Glassnode famous.