The major rally occurred without FOMO, as if almost no one in the public space suffered from fear of missing out the opportunity to buy Bitcoin.
Some market participants believe that the lack of FOMO shows that the current rally is weak. Others argue that Bitcoin has grown into a mature market, so the lack of FOMO shows the internal strength of the rally. Put simply, such analysts believe that the new bull market in Bitcoin has already begun. Who’s right?
The adjustment of Donald Trump’s tariff plans served as the key bullish catalyst for Bitcoin in the last month and a half. The nightmare scenario of a furious trade war between the U.S. and the rest of the world was avoided, which led to a sharp increase in demand for riskier assets, including BTC.
There’s another important catalyst that is driving demand for Bitcoin. Private companies and funds, which follow Michael Saylor’s example and buy BTC on a regular basis, provide significant support to the world’s main cryptocurrency.
Importantly, more firms are moving in this direction, and newcomers include heavyweights. For example, Strive, founded by Vivek Ramaswamy who ran for U.S. President, has recently raised $750 million to buy BTC. The company plans to buy Mt. Gox Bitcoin claims (Mt. Gox went bankrupt in 2014 due to theft).
Trump Media plans a bigger deal. The company wants to raise $2.5 billion to buy Bitcoin, selling $1.5 billion in stock and $1 billion in convertible notes. Trump’s crypto projects attract the attention of his political opponents, but they have been unable to stop the President’s activity in the crypto space.
Interestingly, the crypto debt segment has started to show signs of growth. Talking about the long-term financial stability of the Bitcoin ecosystem, the development of debt-related projects is much more important compared to regular Bitcoin purchases by private companies. Any asset is of little use if it can be bought but cannot be used as collateral.
Cantor Fitzgerald, whose former CEO is the U.S. Commerce Secretary, has launched a $2 billion Bitcoin-backed lending project. According to a recent Bloomberg report, the project has already provided financing to crypto firms FalconX and Maple Finance.
It should be noted that several attempts to build a traditional bank-like structure in the crypto space failed in 2022. At that time, failures of companies like Celsius and BlockFi sent shockwaves across the whole crypto market. This time, bigger firms with greater lobbying capacity like Cantor Fitzgerald have entered the marketplace.
Overall, the fundamental factors, as well as the direct and indirect involvement of top U.S. officials in the current administration continue to support Bitcoin. That said, BTC may feel some pressure from those looking to take profits off the table near historic highs. Once such sales come to an end, Bitcoin will have a great chance to continue its rally.