SEC warns over Bitcoin FOMO as price of biggest digital coin keeps rising

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Last Updated on 9 January 2024 by CryptoTips.eu

Tomorrow is B-day or Bitcoin day if you will. January 10th is the first day that a Bitcoin ETF (exchange traded fund) can be approved by the SEC. If that happens, there are two options in the short term, and one in the long term. And it probably also means that 50 million American Boomers can now easily invest in the largest digital currency, simply by calling their broker.

At the time of writing, Bitcoin is being traded for $46,500.

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Two possibilities

If the American stock market watchdog SEC approves one of the many ETF applications tomorrow, there will be two options for the price of the largest digital currency in the short term. Either it falls during a so-called ‘sell the news’ crash to a level of (probably) $38,000, where there is a lot of support, or it immediately rises to $50,000.

In the long term, it probably means that Bitcoin will attract many new investors, and the SEC itself knows that as well. That’s probably why they’re still having doubts and sent out a FOMO (fear of missing out) warning last weekend. You should interpret that as: we know it’s probably going to climb, so don’t go too crazy.

Ban

Why is that you ask? Well, if a Bitcoin ETF is approved, crypto will witness an influx of traditional investors and it will become much more difficult (almost impossible) for the American legislator to ever ban digital coins in the future (as so many people will be invested in Bitcoin). Wall Street simply wouldn’t allow it.

Furthermore, the importance of the dollar is also set to decline in the long term.

Still, it’s not really a good idea for the SEC to send out such a FOMO warning. The first time they did this was in January 2021. Ten months later, in November 2021, Bitcoin reached its highest price ever.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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