Bitcoin is on the move, recently surging over the $100,000 threshold. This stunning explosion has ignited a new wave of optimism in the industry. In the last day, BTC has gained 3.54% and is currently trading at $103,361. Investors have entered a frenzy as a result of this boom. In that time span of 48 hours, they generated 344,620 new Bitcoin wallets, data from on-chain intelligence firm Santiment shows. Trading volume has more than followed suit, spiking up by 34.15%, bringing that of the total value exchanged to $72.99 billion. The sharp price surge and increased activity are a sign of the overwhelming return of the global “fear of missing out” (FOMO) effect on the Bitcoin market. It’s this change that’s calming investor anxiety and fueling their excitement.

The cryptocurrency’s recent relief rally represents a total reversal in market sentiment, a.k.a., a complete F you to all those bearish predictions. Many analysts and investors are concerned about the current FOMO dynamic. They are concerned that it may instead lead to greater volatility and even set off a market correction.

Surge in New Bitcoin Wallets

Within the span of a mere 48 hours, 344,620 new Bitcoin wallets were generated. This massive peak is a clear indication that more people than ever are interested in cryptocurrency! This flood of new [] entrants into the Bitcoin market is a clear signal of renewed confidence. Underneath this excitement is the indisputable recent catalyst …the price of Bitcoin soaring. Bitcoin’s value continues to soar. As a consequence, even more people are motivated to take advantage of the chance, which further increases demand and can further inflate prices.

The large spike in new wallets indicates a much more widespread interest, from retail investors through institutional players. This massive real-world adoption might be a sign that the market is maturing, and that Bitcoin is being seen as more of a mainstream investment.

The continuous and rapid influx of new users makes this challenging. We’ll need strong infrastructure and cultural educational resources to accommodate this expanding community. Exchanges and wallet providers need to upgrade their platforms to handle the influx of new users and increased traffic. Strong security measures to protect users’ assets are table stakes.

Trading Volume and Market Volatility

As you’re probably aware, bitcoin’s price has skyrocketed over the past few months. Over the past 24 hours, massive trading volume surged to $72.99 billion with a stunning 34.15% increase! This spike in activity is an indication of the heavy buying and selling pressure from investors scrambling to keep up with the cryptocurrency’s often whipsaw price fluctuations. Higher trading volume increases market volatility. In particular, large buy or sell orders can move prices heavily in one direction.

While higher trading volume can indicate a healthy and active market, there are risks associated with increased trading volume. With volatility and sudden price swings, new traders could face immediate and significant losses. This underscores how important it is to exercise prudence and effectively balance risks.

Changpeng Zhao, the now-ousted CEO of Binance, has urged investors to stay cool in the chaos.

"It is important not to give in to the temptation to sell in haste." - Changpeng Zhao

Psychological Threshold and Market Confidence

Bitcoin passing $100K serves as a more meaningful psychological barrier. This milestone has piqued the interest of both veteran investors and newcomers to the cryptocurrency space. Going beyond this point further reinforces the narrative behind Bitcoin as a true inflationary hedge asset. It makes its grip in the financial landscape that much tighter.

This milestone has since unleashed an unprecedented wave of bullish sentiment in the Bitcoin market. Perhaps most functionally, it has driven out all the past doubts and concerns. Investors who weren’t ready to take the BTC plunge are starting to feel the FOMO. They don’t want to miss out on huge potential gains after the best year in the U.S. market since 1933.

Psychological thresholds become the new barriers to be crossed. Here, prices are vulnerable to sell pressure as investors look to lock in gains. Whether or not the market can maintain prices over $100,000 will hinge on ongoing demand and perhaps more importantly, bullish market sentiment.