Home » When Robinhood FOMO? Bitcoin Price Pulling a ‘Kodak’ Means Six Figures
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When Robinhood FOMO? Bitcoin Price Pulling a ‘Kodak’ Means Six Figures

When Robinhood FOMO? Bitcoin Price Pulling a ‘Kodak’ Means Six Figures

Retail merchants on Robinhood have been more and more seeing “worry of lacking out” or FOMO rallies round sure shares. The newest beneficiary has been the inventory worth of the famend digital camera producer Kodak (KODK) whose inventory surged from $2 to $60 in someday. 

Subsequently, given the present local weather of financial uncertainty and “infinite QE,” if the optimism round risk-assets flows over to Bitcoin, possibilities of an identical rally for BTC worth — as some analysts are presently predicting — definitely improve.

Furthermore, following the Federal Reserve’s FOMC assembly on July 29, strategists count on the general sentiment of buyers to recuperate, which is sweet information for Bitcoin bulls given the latest correlation between Bitcoin and shares.

Bitcoin investor reacts to the Kodak rally. Supply: Jason Williams

Why Kodak noticed a parabolic rally and why some BTC buyers count on the identical

On July 28, U.S. President Donald Trump mentioned Kodak would obtain a $765 million mortgage to create Kodak Prescribed drugs. Kodak has been producing supplies and chemical merchandise for fairly a while. 

Kodak shifted away from the digital camera trade in 2013, and President Trump’s message additional solidified Kodak’s presence in pharmaceutics. It got here after the federal government determined to lower the dependence of the U.S. on drug producers in abroad markets.

Consequently, Kodak noticed a rally that even outperformed the 2017 parabolic uptrend of Bitcoin. In a single buying and selling session, the Eastman Kodak Firm inventory rose by 318%. It broke by way of 20 circuit breakers, securing a $1.45 billion market capitalization. At its peak, Kodak surged by 2,198% in 2 days.

KODK stock price performance 2017-2020

KODK inventory worth efficiency 2017-2020. Supply: Tradingview

Contemplating the sudden surge of KODK worth from $2 to $60, an identical rally would translate into BTC costs over nicely over six figures, vindicating fairly a couple of $100Okay worth predictions for 2020 from some notable trade specialists. 

KODK worth and Bitcoin additionally noticed some correlation in early 2018 together with different cryptocurrencies. As Bitcoin rallied to all-time highs of almost $20,000, KODK surged from $Three to over $13 throughout the identical interval. 

In the meantime, Robintrack.internet studies that greater than 100,000 Robinhood customers now maintain the Kodak inventory. Earlier than the announcement, lower than 10,000 customers had been invested in KODK.

Robinhood users FOMOed into Kodak

Robinhood customers FOMOed into Kodak. Supply: Robintrack.internet

Kodak and Bitcoin don’t have any obvious similarities. However the in a single day rally of the inventory and the sudden influx of capital from retail buyers present how briskly the pattern may change.

It additionally demonstrates the impact favorable market circumstances are having on shares and different belongings. The Fed emphasised within the formal FOMC assertion that it’ll do something that it takes to revive financial development.

Market FOMO comes at a superb time for BTC

The value of Bitcoin has elevated from $3,600 to over $11,400 inside 5 months. The rally comes after a block reward halving on Might 11, which happens each 4 years.

As Cointelegraph reported on Wednesday, high-profile buyers are expressing enthusiasm in direction of the continued Bitcoin uptrend. Cameron Winklevoss, the billionaire founding father of cryptocurrency change Gemini, mentioned the following Bitcoin bull run could be “dramatically totally different.”

Among the many three causes Winklevoss laid out, he pinpointed the involvement of considerably larger capital within the crypto market. The market cap of Tether and the AUM of Grayscale present considerably extra capital is sitting in crypto than in earlier years. For that motive, buyers consider that when an uptrend kickstarts, it may set off a FOMO rally amongst retail buyers.

Based mostly on numerous metrics, Jason Williams, the co-founder of Morgan Creek Digital, mentioned he foresees Bitcoin attaining a brand new all-time excessive inside 2020.


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