Bitcoin Price Surge Triggers Multi-Year High in FOMO Among Investors
The surge in Bitcoin's price to $87,395 on September 21 has coincided with a multi-year high in FOMO (fear of missing out) among investors. According to Santiment metrics analyzed by Finbold, Bitcoin's FOMO spiked to its highest level since December 2024, indicating increased bullish sentiment.
The increase in FOMO has been accompanied by a short squeeze, where short sellers are forced to cover their positions, driving up the price of BTC. This phenomenon was observed on Monday, with $297.20 million being liquidated through short trades, according to CoinGlass data.
Bitcoin's Open Interest, which represents the total number of outstanding derivative contracts, has also increased by 4% in the past 24 hours, reaching $61.56 billion at press time. Additionally, U.S. spot BTC exchange-traded funds (ETFs) recorded a net cash inflow of $998.95 million on Monday, their biggest daily inflow so far this year.
As a result of these developments, Bitcoin's price has rallied to an 8-month high, with its trading volume increasing by 54% to approximately $52 billion over the past 24 hours, according to CoinMarketCap.