Retail traders on Robinhood are seeing “fear of missing out” or FOMO rallies around specific stocks. The most recent beneficiary was this stock price of the renowned camera maker Kodak (KODK) whose stock jumped from $2 to $60 in 1 day.
Hence, given the present climate of economic uncertainty and “infinite QE,” when the optimism about risk-assets flows to Bitcoin, odds of a similar rally for BTC price — as a few analysts are predicting — surely grow.
Additionally, after the Federal Reserve’s FOMC meeting on July 29, strategists expect the general opinion of investors to recover, which can be very good news for Bitcoin bulls granted the current correlation between Bitcoin and stocks.
Bitcoin investor responds to the Kodak rally. Resource: Jason Williams
Exactly why Kodak watched a parabolic rally and some BTC investors anticipate exactly the same
On July 28, U.S. President Donald Trump stated Kodak would obtain a $765 million loan to make Kodak Pharmaceuticals. Kodak has been generating substances and compound products for quite a while.
Kodak switched away in the camera business in 2013, and President Trump’s message further afield Kodak’s existence in pharmaceutics. It arrived after the authorities chose to lower the dependence on the U.S. on medication manufacturers in foreign markets.
Hence, Kodak watched a rally that outperformed the 2017 parabolic uptrend of Bitcoin. In one trading session, the Eastman Kodak Company stock climbed by 318%. It broke through 20 circuit breakers, procuring a $1.45 billion market capitalization. During its summit, Kodak jumped by two,198% in two days.
KODK stock price functionality 2017-2020. Resource: Tradingview
Considering that the abrupt spike of KODK price from $2 to $60, a similar rally could translate into BTC costs over six figures, vindicating quite a few $100K price forecasts for 2020 from a notable industry specialists.
KODK price and Bitcoin also observed some significance in ancient 2018 and different cryptocurrencies. Since Bitcoin rallied to all time highs of almost $20,000, KODK jumped from $3 to more than $13 during precisely the exact same period.
Meanwhile, Robintrack.net reports that over 100,000 Robinhood users today hold the Kodak stock. Ahead of the statement, less than 10,000 users were spent in KODK.
Robinhood consumers FOMOed to Kodak. Resource: Robintrack.net
Kodak and Bitcoin possess no glaring similarities. Nevertheless, this overnight rally of the stock along with also the sudden inflow of funds from retail investors reveal how quickly the tendency could change.
Additionally, it shows the impact positive market requirements are getting on stocks and other assets. The Fed highlighted from the formal FOMC announcement that it’ll do anything it requires to revive economic development.
Marketplace FOMO comes at a fantastic time for BTC
The price of Bitcoin has risen from $3,600 to more than $11,400 in five months. The rally comes following a block reward halving on May 11, which happens every four decades.
As Fintech Zoom reported Wednesday, high-profile shareholders are expressing excitement towards the continuing Bitcoin uptrend. Cameron Winklevoss, the billionaire creator of cryptocurrency exchange Gemini, stated the following Bitcoin bull run could be “dramatically different.”
One of the 3 motives Winklevoss laid out, he pinpointed the participation of considerably larger funding in the crypto marketplace. The market cap of Tether and the AUM of Grayscale demonstrate considerably more funds is sitting in crypto than in preceding decades. Because of this, investors think that if an uptrend kickstarts, it might activate a FOMO rally among retail investors.
Based on several different metrics, Jason Williams, the co-founder of Morgan Creek Digital, stated he foresees Bitcoin attaining a new all-time large in 2020.
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