Hardly anyone wants to miss the party -- whether on Wall Street or elsewhere.
Thus, the acronym FOMO -- which stands for the "fear of missing out" -- is in vogue. After a 12-years long bull market, the acronym has appeared in many financial articles.
Yet, the acronym was coined years before the current bull market.
The phrase "bank run" tends to conjure up images of the 1930's Great Depression.
However, that phrase is now applicable to the 2021 world of cryptos.
This is from a June 17 coindesk.com article:
A near-total collapse in the price of a share token of a decentralized finance (DeFi) protocol was "the world's first large-scale crypto bank run," the people behind Iron Finance said in a blog post providing a postmortem. The run brought the worth of the protocol down from $2 billion to near zero on [June 16].
It all started when "a series of large holders tried to redeem their IRON tokens and sell their iron titanium (TITAN), the token of the Iron Protocol." In other words, a lot of people were headed for the exit door at the same time.
Of course, that has a parallel to a "bank run," when throngs of depositors want to take their money out of the bank all at once.
So, like with other exceptionally volatile markets, cryptos can hugely reward, but just as quickly -- punish.
Indeed, the June Global Market Perspective, an Elliott Wave International monthly publication which provides forecasts for 50+ worldwide markets, showed this chart and said:
So-called altcoins, dash, litecoin and ethereum, rallied until May 7, May 10 and May 12, respectively. Then they crashed. Various other indicators also pressed on. According to a Bank of America monthly survey, fund managers were never as enamored with bitcoin as they were in the first few days of May. The result of its poll of 194 managers showed that bitcoin was the "most crowded trade," with 43% saying they were long bitcoin.
The University of Michigan's consumer sentiment for the US was revised lower to 85.5 in June of 2021 from a preliminary of 86.4 and below market expectations of 87.4.
