Bitcoin (CRYPTO: BTC) has headed upwards in a hurry this month, and it’s not done yet.
That’s according to DeVere Group chief executive Nigel Green, who cited how on Monday the cryptocurrency hit its highest level since 2 January.
“Bitcoin is up nearly 25% in the last 10 days, smashing through the US$35,000 to US$45,000 band where it has been lodged since January,” he said.
“It’s now edging nearer to the important US$50,000 level.”
As of Tuesday morning Australian time, Bitcoin traded at US$47,257.80 ($62,829.86).
FOMO is driving the latest bull run
According to Green, if Bitcoin can now smash through the psychological US$50,000 barrier, anything can happen as FOMO (fear of missing out) is triggered.
“Should it… surge through this key price marker, we expect the current bull run would become supercharged as crypto FOMO would kick in – as it typically does when Bitcoin prices shoot up.”
This is because such a resurgence would again remind investors who are not in the game that crypto is the “future of money”.
“As such, prices are set to skyrocket over the long-term – and both institutional and retail investors will not want to miss out on the ‘early advantage’ edge,” Green said.
“Watching others make decent returns during a good rally may make you feel obligated to join in and get in on the gains.”
Even though Green has always been a crypto bull, he said that FOMO alone is not a good enough reason for investors to dive in.
“Even though the desire to get on the bandwagon can be strong, it is typically not a sound way to make investment decisions and is usually ill-advised.”
Professional investors are getting into Bitcoin
Green observed that the mainstream finance industry is finally recognising that digital currencies are inevitably the future.
“This is now becoming clear even to institutional investors — including credit unions, banks, large funds such as mutual or hedge funds, venture capital funds, insurance companies, and pension funds — as well as governments and multinational corporations.”
The “inherent value” of Bitcoin and similar currencies for instant borderless transfer of money simply can’t be ignored, he added.
The war in Ukraine has brought home such use-cases for a “decentralised, permissionless, censorship-resistant and unconfiscatable” way to move funds.
“The fundamentals of Bitcoin, the cryptocurrency’s intrinsic characteristics are, indeed, sound,” Green said.
“The world is racing towards a digital revolution and as investors increasingly pay attention to this, the long-term trajectory for Bitcoin, surely, has to be upward.”