Bitcoin – Extends gains as FOMO trade resumes

Always a wild ride

Bitcoin is continuing to make strides higher on Tuesday, building on the momentum the rally gathered over the weekend at at the start of the week.

As ever, we’re seeing numerous explanations for the latest gains in the cryptocurrency space but there looks to be very little of actual substance to them. Often with other instruments, there is something that would trigger such a move, but let’s face it, bitcoin is not like any other instrument.

Rather, this is just another example of a FOMO rally. We saw a correction in bitcoin but the good feeling remains following the launch of Facebook’s Libra coin and as we’ve seen before, if people think it can continue to rise – justified or not – it will do so. Irrationality is nothing new in the space and the days of very volatile trading is well and truly back.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.