Bitcoin Price Volatility: FOMO and ETF Proposals Impact Market

Bitcoin's price surged to a high of $94,625, sparking renewed investor interest and fear of missing out, or FOMO, as reported by Cointelegraph. However, the price quickly retracted to around $92,400, raising concerns about the sustainability of this rally.

Analysts from Santiment noted that while social media chatter increased, market movements often go against small trader behavior, indicating potential manipulation behind the price spike. Meanwhile, the upcoming Federal Reserve meeting looms, with an 88.6% likelihood of a 0.25% rate cut, which could further influence Bitcoin's volatility.

The new ETF proposal from Tidal Trust aims to trade Bitcoin during off-market hours, potentially capturing gains that occur outside of traditional trading, but regulatory approval remains uncertain. ETF flows showed some stabilization after significant redemptions in November, with a $56.5 million inflow noted recently by CoinDesk.

Despite these developments, the market is characterized by a lack of heavy buying and low liquidity, indicating that while some price recovery is evident, demand remains weak and sellers still dominate the landscape.