After a week in which bitcoin flirted with $9,000 for the first time in a year, Fundstrat’s Tom Lee cited data which suggests the point of no return is fast approaching.
According to data from Fundstrat, when the value of bitcoin crosses the $10,000 barrier, it’s full-blown FOMO all the way. Labeled as ‘Level 10’ FOMO, this represents the equivalent value at which Bitcoin has soared in the past.
FULL BLOWN ‘LEVEL 10’ FOMO APPROACHING FOR BITCOIN
Global head of the Financial Times, Adam Samson tweeted the following graphic on Wednesday, along with this tweet:
— Adam Samson (@adamsamson) May 29, 2019
Tom Lee then made an appearance in the thread to cool Samson’s eagerness, but essentially confirmed the conclusions drawn from the data. Lee wrote:
“Actually the point of the chart is to say “real FOMO” probably starts when bitcoin exceeds $10,000, as that is a price level only seen 3% of all days… …Mathematically equivalent to exceeding $BTC $4,500 in 2017. Looking back, that price was a level that indeed triggered FOMO.”
Glancing at the Bitcoin charts from late 2017, we see that $10,000 was a clear turning point. However, Lee’s price-focused data fails to take fundamental factors into account.
In early December 2017, the launch of CME Group’s bitcoin futures market was announced. A couple of weeks later, when the futures market actually opened, the value of bitcoin plummeted to depths from which it has yet to recover. Read this prescient Bitcointalk forum thread to get a sense of the uncertainty surrounding CME’s impact at the time.