Retail FOMO Drives Bitcoin Transactions Under $100K to 3-Year High: Is This a Warning Sign?

Bitcoin sees a notable rebound as retail investor activity spikes, with rising small-value transactions signaling FOMO. Bitcoin rebounded to $91,612 on Monday after a bearish weekend that saw its price dip to $87,000. The cryptocurrency gained 0.96% in the last 24 hours and 11.79% over the past week. This uptick coincides with rising retail investor activity, according to Ki Young Ju, CEO of CryptoQuant.Young Ju pointed to a surge in small-value Bitcoin transactions under $100,000, marking a three-year high. This trend, indicated by Bitcoin’s Spent Output Value Bands (SOVB), reflects increased participation from retail investors. Typically, retail activity rises when market optimism grows, especially during upward price movements.https://twitter.com/ki_young_ju/status/1858383043700064299Small-Value Bitcoin TransactionsData from CryptoQuant illustrates that transactions below $100,000 have become the most prominent segment in the SOVB metric. This surge in small-value transactions is a sign of rising retail investor activity. Historically, increased retail engagement often precedes broader market rallies, driven by fear of missing out (FOMO).The recent increase suggests growing confidence among smaller investors as Bitcoin approaches the $100,000 mark. However, the CEO cautions that these shifts could also attract larger investors seeking liquidity.Hint of Future CorrectionsDespite the bullish momentum, Young Ju warned of potential corrections in the short term. He noted that Bitcoin's futures perpetual market remains overleveraged, signaling possible volatility ahead. Nevertheless, he emphasized that such corrections would not signify the onset of a bear market. According to Young Ju, the current capital inflow suggests Bitcoin’s upper limit could reach $135,000 in this cycle. While long-term bullish sentiment persists, traders are advised to exercise caution when using leverage to avoid overexposure.Bitcoin as Economic SolutionIn related developments, Robert F. Kennedy, a former U.S. presidential candidate, reiterated his support for Bitcoin. In a viral video, Kennedy revealed that a substantial portion of his wealth is now invested in Bitcoin. His pro-Bitcoin stance emerged after attending the 2023 Bitcoin Conference, which influenced his financial decisions. Kennedy has consistently promoted Bitcoin to address economic challenges, such as inflation and the weakening U.S. dollar. In a recent tweet, he described Bitcoin as a “currency of freedom” and endorsed it as a hedge against economic instability. He also backed Howard Lutnik for U.S. Treasury Secretary, advocating for Bitcoin’s role in economic policy.