Retail merchants in Robinhood have increasingly seen “fear of getting lost” or FOMO protests around certain actions. The latest beneficiary has been the share price of renowned camera maker Kodak (KODK), whose shares rose from $ 2 to $ 60 in one day.
Therefore, given the current climate of economic uncertainty and “infinite QE”, if optimism around risky assets carries over to Bitcoin, the chances of a similar recovery for the price of BTC, as some analysts currently predict, they certainly increase.
Furthermore, after the Federal Reserve FOMC meeting on July 29, strategists hope that overall investor sentiment will rebound, which is good news for Bitcoin bulls given the recent correlation between Bitcoin and stocks. .
Bitcoin investor reacts to Kodak rally. Source: Jason Williams
Why Kodak saw a parabolic rally and why some BTC investors expect the same
On July 28, United States President Donald Trump said Kodak would receive a $ 765 million loan to create Kodak Pharmaceuticals. Kodak has been producing materials and chemicals for quite some time.
Kodak pulled away from the camera industry in 2013, and President Trump’s message further solidified Kodak’s presence in the pharmaceutical industry. It came after the government decided to lessen the U.S. dependence on drug manufacturers in foreign markets.
Consequently, Kodak saw a recovery that even surpassed Bitcoin’s 2017 parabolic bullish trend. In a single trading session, Eastman Kodak Company shares rose 318%. He broke 20 circuit breakers, ensuring a market capitalization of $ 1.45 billion. At its peak, Kodak increased 2.198% in 2 days.
Yield of KODK 2017-2020 share price. Source: Tradingview
Considering the KODK price surge from $ 2 to $ 60, a similar recovery would translate to more than six-figure BTC prices, claiming quite a few $ 100K price predictions for 2020 from some notable industry insiders.
The price of KODK and Bitcoin also saw some correlation in early 2018 alongside other cryptocurrencies. As Bitcoin rebounded to all-time highs of nearly $ 20,000, KODK rose from $ 3 to over $ 13 during the same period.
Meanwhile, Robintrack.net reports that more than 100,000 Robinhood users now own the Kodak shares. Before the announcement, fewer than 10,000 users were invested in KODK.
Robinhood FOMOed users on Kodak. Source: Robintrack.net
Kodak and Bitcoin have no obvious similarities. But the overnight rally in equities and the sudden influx of capital from retail investors show how quickly the trend could change.
It also demonstrates the effect that favorable market conditions are having on stocks and alternative assets. The Fed emphasized in the FOMC’s formal statement that it will do whatever it takes to revive economic growth.
Market FOMO comes at a good time for BTC
Bitcoin price has increased from $ 3,600 to over $ 11,400 in five months. The rally comes after the block reward halved on May 11, which occurs every four years.
As Cointelegraph reported on Wednesday, high-profile investors are expressing enthusiasm for Bitcoin’s current uptrend. Cameron Winklevoss, the billionaire founder of the Gemini cryptocurrency exchange, said Bitcoin’s next run would be “dramatically different.”
Among the three reasons Winklevoss expounded, he noted substantially larger capital share in the crypto market. Tether’s market capitalization and grayscale AUM show that there is much more capital in crypto than in previous years. For that reason, investors believe that when an uptrend starts, it could trigger a FOMO recovery among retail investors.
Based on various metrics, Jason Williams, co-founder of Morgan Creek Digital, said he expects Bitcoin to hit a new all-time record in 2020.
