Current BTC rally is due to ‘institutional FOMO’ analysts say. Whalemap analysts described the recent spike in demand for Bitcoin from whales as “institutional FOMO.”
FOMO, short for “fear of missing out,” refers to a trend in which investors increasingly buy into an asset out of fear it will continuously surge. Referring to a chart showing whale clusters and inflows into whale wallets, the analysts said “These are the levels and this is what institutional fomo looks like.”
Whale clusters emerge when whale addresses — addresses that hold over 10,000 BTC — buy Bitcoin and do not move it for prolonged periods of time.
This indicates that whales plan to hold their most recent BTC purchases in their personal wallets. Whalemap analysts said “Bubbles indicate prices at which whales have purchased BTC that they are currently holding.” The aggressive accumulation of Bitcoin from whales likely occurred based on two key trends that have been present in the cryptocurrency market since October.
First during the recent rally, there has been a sharp decline in short-contract liquidations. Upwards of $100 million worth of contracts were liquidated on major exchanges in previous rallies, when BTC broke out. This indicates that the rally was not a short squeeze, but an actual period of accumulation.
Second, the futures sector has been leading the spot market, not vice versa. The BTC funding rate was seldom above the average 0.01 percent when the BTC price was rising.
The low funding rate shows that the futures market has not been majority long, demonstrating that the demand came from elsewhere.
[image: Dmitry Demidko]