Bitcoin's volatile surge: US officials warn against FOMO-driven investments amid ETF anticipation
6:07 PM EST, January 9, 2024
Despite Bitcoin (BTC) reaching high prices, it remains far from its all-time high. In November 2021, Bitcoin was traded for close to 68 thousand dollars. Investors are buying Bitcoin hopeful for the SEC's approval of the first ETF funds based on the cryptocurrency's spot price— reports "Interia Biznes".
"Interia Biznes" details that the proposed ETF BTC funds aim to enable investment in Bitcoin without owning them in investment portfolios. This makes the popular virtual currency more accessible to a larger group of Americans.
However, Bitcoin took a roughly 9 percent drop in early January in just two and a half hours - from 45 thousand to 41 thousand dollars. The drop was a reaction to unconfirmed news that the SEC (U.S. Securities and Exchange Commission) planned to dismiss all applications to create spot Bitcoin ETF funds, postponing the subject for a few months.
US officials warn against FOMO
Financial markets anticipate the SEC will declare its decisions on the new ETFs by January 10 at the latest. The American institution has urged investors to avoid making rushed decisions ahead of this announcement.
Officials warn against FOMO or fear of missing out. This occurs when investors decide to buy because others are doing so, worrying that without prompt action, the price will swiftly rise to a level that precludes safe investment.
The fear of "missing a lifetime chance" could prompt ill-advised financial decisions or ensnare careless investors who rely on their ignorance and naivety.
"Biznes Interia" reminds us that the American financial regulator has consistently punished celebrities for their role in promoting cryptocurrency. For instance, in 2023, Kim Kardashian consented to pay 1.26 million dollars in a settlement after failing to disclose that she received 250 thousand dollars to promote a sham token called Ethereum Max (EMAX) to her 360 million Instagram followers.
