After making a late-May rally that took bitcoin briefly above $9000, the currency experienced a severe correction. The price of btc fell more than $500 in minutes and saw a gradual pullback from the markets over the past week–at one point trading for $7500.
Smart investors bought the dip for bitcoin, as the price of btc has once again passed above $8000.
Crypto analytics firm SFOX published a report on June 6 claiming that investor Fear of Missing Out (FOMO) largely drove the price of bitcoin through May. While the firm’s ‘Multi-factor Market Index’ gave btc a ‘mildly bullsih’ outlook last month, the currency was downgraded to ‘uncertain’ following what they determined to be FOMO-driven investment.
Following btc’s meteoric drop from $19700 throughout 2018, investors attempted to pile in at the bottom before the price of bitcoin took off in early April. Bitcoin’s price shot from $4100 to $9000 in two months, largely on the expectation that the price would continue to rise. The end result was a shakey sentiment for crypto, with SFOX uncertain whether the price indicated growing interest for the coin,
While the crypto market as a whole recovered substantially in May 2019, the overall sentiment appears to be at a tipping point: especially in the wake of the explosive late-2017 rally, it’s not clear in times of rapid growth how much of the growth is due to underlying fundamentals and how much is due to “fear of missing out”, or “FOMO.” This may be why the growth we’ve seen lately has been accompanied by renewed volatility and substantial swings in the prices of leading cryptoassets such as BTC.
Despite FOMO drying up for the coin, the price of bitcoin took off another rally, rising above $8000 and giving some indication that a bull trend might be in play. Litecoin also went on a tear, gaining 11 percent in twenty-four hours. The price of ltc rose to $116, outpacing the rest of the market.
Litecoin has been one of the largest gainers of any top crypto in 2019, falling just short of Binance Coin in positing massive gains throughout the year. Part of the price is being driven out of recognition for the currency as a faster and cheaper alternative to bitcoin for transactions. However, litecoin is also about to undergo a halving in its coin rewards, reducing the number of newly minted coins each day and thereby decreasing supply.
Litecoin also received an unexpected boost from US Presidential candidate Andrew Yang. Yang, who has been making round in the cryptocurrency community, published a tweet on June 5 with litecoin founder Charlie Lee, congratulating the latter as a pioneer,
“Congrats @SatoshiLite on being such a pioneer – let’s build the future.”
Crypto, in general, has had a strong first half to 2019 with adoption for digital currencies at an all-time high. Unlike 2018, valuation for the crypto markets is beginning to reflect