$100,000 Bitcoin: Unstoppable FOMO

On the 28th, Ben Carlson, an analyst at Ritholtz Wealth Management LLC, wrote an article titled "Is It Too Late to Buy Bitcoin?" He believes that many people are now eager to invest in Bitcoin, often because the price has risen sharply, and they are influenced by FOMO emotions, forming a mentality of blindly chasing the rise.

He suggested that when investors consider cryptocurrencies, they should ask themselves why they should enter the market now, stay calm, make rational judgments, and not blindly follow the trend just because the price has risen.

"I can calculate the movement of celestial bodies, but I cannot calculate the madness of men"

Bitcoin has skyrocketed recently, and investors, driven by FOMO sentiment, have begun to wonder whether they have missed this wave of rising prices.

In this regard, Carlson said that investment decisions made by blindly following the trend may bring huge risks, as the experiences of many famous investors in history have warned us - even a great scientist like Isaac Newton could not escape the emotional trap in investment.

In 1712, the stock of the British South Sea Company skyrocketed in a short period of time. Mathematician, physicist and astronomer Newton made a small profit when he first invested in the South Sea Company's stock. After tasting the sweetness, he invested more money again until the bubble burst.

Ultimately, he lost between £10,000 and £20,000 in the South Sea Bubble, about £20 million today. Newton was filled with remorse and once said:

“I can calculate the movement of celestial bodies, but I cannot calculate the madness of men.”

Newton's South Sea Company investment is not only a story of a financial bubble, but also reflects the vulnerability of human beings to market sentiment. In the centuries after Newton, similar situations are not uncommon, especially in the stock market, real estate and other high-risk investment fields. Behind every market surge, there is often an irrational bubble.

Stay calm, make rational judgments, and avoid FOMO psychology from dominating decision-making

Carlson pointed out that the rise in Bitcoin prices has attracted the attention of a large number of investors, but investors need to think rationally and examine their motivations for entering the market. Many people are only now becoming interested in Bitcoin because the price has risen sharply, forming a blind pursuit of rising prices.

This behavior often puts investors into a vicious cycle of "chasing up and selling down". The price of Bitcoin may continue to rise, but it may also plummet due to market adjustments.

He believes that investing in high-risk assets such as Bitcoin may bring rich returns, but it is also full of uncertainty. Instead of relying on impulsive decisions driven by FOMO, it is better to adopt a rational and stable strategy and not be swayed by short-term market fluctuations. After all, many great investors in history have suffered unbearable losses precisely because of their over-reliance on emotions and short-term market trends.

For investors who are considering investing in Bitcoin now, Carlson warns: If you decide to enter the market now, it may be just because of the surge in prices and FOMO psychology. This kind of emotion-driven investment is often difficult to sustain.