Why are Bitcoin prices rising exponentially? I think this is “retail” buying all with a fear of missing out (FOMO). I mean, who wouldn’t look at this chart and think “now is the time to buy?”
Anecdotally I can say that Coinbase has been trading at higher prices relative to other exchanges over the past several days even weeks. Coinbase is arguably the easiest platform for “retail” investors to buy Bitcoin. News broke recently that Coinbase now has more users than charles schwab.
This tells me that the small retail buyers are pushing in trying to get in on the action. For reasons I’ve discussed earlier its impossible to try and call a top – even a temporary top. Big dips have happened, but there have been buyers eagerly awaiting entry. This is reinforcing new buyers who feel getting into bitcoin is a “can’t lose” proposition. Maybe these buyers are right and we’re witnessing a paradigm shift to Bitcoin as the new “money”. Or, maybe prices have gotten ahead of themselves. Who knows.
Anyone that claims to knows what happens next is a liar. Just don’t trade with more than you can afford to lose, and enjoy the ride.