Despite a 120% increase in Bitcoin (BTC) price this year, the much anticipated “FOMO” or fear of missing out has not yet materialized in the Bitcoin bull market. Data from Look Into Bitcoin, a statistics platform, reveals that on-chain transactions are only beginning to involve “younger” Bitcoin, indicating that the market has not yet seen a significant return by speculators.
The Bitcoin bull market analysis suggests that it is still in its early stages. Even though Bitcoin is currently close to 18-month highs and has surpassed several key resistance levels, the number of smaller wallets is increasing, but speculators have not made a substantial return to the network yet. According to Philip Swift’s post on Look Into Bitcoin, the realized cap HODL waves metric, also known as RHODL waves, indicates that the movement of coins on-chain has only just begun to increase, which suggests that there is no FOMO yet, and the market is still in its early stages.
The profitability of Bitcoin is nearing a “potential breakeven point” for hodlers who increased their exposure to BTC in the run-up to the 2021 all-time highs. Using the net unrealized profit/loss (NUPL) indicator to offer profitability ratios for cohorts of stored coins, Onchained, a contributor to on-chain analytics platform CryptoQuant, explained that considering NUPL across different age bands provides insights into profitability dynamics. Notably, the graph reveals that all UTXO age bands are currently profitable, except for holders with bitcoins held for 18 months to 3 years. This suggests that these holders are nearing a potential break-even point if Bitcoin continues its rally beyond $39,000.
CryptoQuant data also indicates that the overall proportion of unspent transaction outputs, or UTXOs, currently at a loss is just 11.6%. As a result, whale entities have been increasing Bitcoin selling at current prices. However, it is important to note that this article does not contain investment advice or recommendations, and every investment and trading move involves risk, so readers should conduct their own research before making any decisions.
Despite the bullish indicators, it is evident that the market is still in its early stages, and major FOMO has not yet occurred. The increase in smaller wallets and the movement of coins on-chain suggests that there is still room for growth in the Bitcoin market. As Bitcoin continues to approach its potential breakeven point, hodlers are closely watching the market dynamics to decide on their next move. It will be interesting to see how the market evolves in the coming months and whether major FOMO will finally take hold as Bitcoin continues its rally.