"Am I the Only One Without Bitcoin?" Concerns Over 'Debt Investment' Amid Trump Rally Surge [Dito Society]

(14) FOMO Syndrome in Rising Rally... Blind Investment Up
Bitcoin Hits All-Time High Amid US Presidential Election
Experts Warn "Be Cautious with Coin Investment... Avoid Debt Investment"

Editor's NoteThe Seoul National University Consumer Trend Analysis Center has identified 'Ditto consumption' as one of the top 10 keywords for 2024. Ditto, derived from the Latin word meaning 'the same,' refers to the tendency to imitate celebrities' tastes and trends when purchasing products or consuming content. This article analyzes the blind 'Ditto' phenomena in Korean society, such as the lowering age of luxury consumption and the increasing trend-following investments.

Following the U.S. presidential election, Bitcoin has reached an all-time high, sparking a wave of 'blind investments' in cryptocurrencies. After the victory of Donald Trump, who is favorable toward cryptocurrencies, the value of virtual currencies surged, triggering a FOMO (Fear of Missing Out) phenomenon where investors feel compelled to jump on the rising trend. However, experts warn that due to the high volatility of virtual assets, jumping into 'blind investments' could lead to significant losses.

Bitcoin has continued its upward trajectory before and after the U.S. presidential election. On the Coinbase exchange, the largest cryptocurrency exchange in the U.S., Bitcoin was trading at $99,955 as of 4:15 AM KST on the 22nd, approaching the $100,000 mark. This significantly surpasses the $93,400 level recorded on the 13th.

The surge in Bitcoin prices has been fueled by expectations of policy benefits following Trump's second term. During his first term, Trump expressed a negative view of cryptocurrencies, stating "cryptocurrency is not money," but during this election campaign, he promised to "make the U.S. the capital of cryptocurrency" and pledged to ease regulations related to virtual currencies.

Subsequently, Bitcoin was perceived as a beneficiary asset of Trump's policies, breaking through the $75,000 mark on election day, November 5th, surpassing the previous all-time high of $69,000 recorded in March after about seven months. Trump has also sent positive signals to the cryptocurrency market by appointing Jay Clayton, former chairman of the Securities and Exchange Commission, as the U.S. Attorney for the Southern District of New York, which oversees Wall Street.

Despite Bitcoin's continuous record-breaking highs, experts remain cautiously optimistic. Jeff Kendrick, a researcher at Standard Chartered, recently told the cryptocurrency media outlet 'The Block' that "Bitcoin could reach $100,000 ahead of the options expiration date on the 27th of next month and rise to $125,000 by January next year before Trump's inauguration."

There is also analysis that geopolitical tensions, such as the Russia-Ukraine war, have influenced Bitcoin's rise. On this day, CNBC reported that "like gold, cryptocurrency assets are perceived by many investors as a 'non-confiscatable' long-term hedge against geopolitical uncertainty."

The photo shows the real-time trading status board at Bithumb Lounge Gangnam Branch in Seoul on the 11th. Photo by Yonhap News.

The problem is that many people are jumping into 'blind investments' trying to ride this upward trend. Seeing other investors making large profits, some recklessly cash out their savings or deposits to invest, risking significant losses in a highly volatile market. Among some investors, there are even cases of so-called 'debt investing' (borrowing excessively to invest).

Currently, the cryptocurrency market is showing warning signs of 'greed.' As of the 20th, the Crypto Fear and Greed Index on the cryptocurrency price information site 'CoinMarketCap' stands at 82, indicating 'extreme greed.' This means that due to increased price volatility and trading volume, short-term peaks may form, so caution is advised when investing.

Experts warn against following the herd driven by FOMO syndrome, the fear of being left behind. CNBC pointed out, "Bitcoin lacks a long-term history and is extremely volatile, making it a risky asset that may favor short-term traders," adding, "It is difficult to say that Bitcoin remains continuously attractive."