Bitcoin surpasses 118,000 USD but the market has not yet seen FOMO.

Bitcoin (BTC) has for the first time in history surpassed the milestone of 118,000 USD on Friday. However, despite the rise to the sky, the market has yet to record significant signs of the "fear of missing out" (FOMO) in the past two days – indicating that the largest cryptocurrency in the world still has room for growth in the current cycle.

In the past 24 hours, Bitcoin has skyrocketed above 118,000 USD, after the spot ETF funds in the US recorded a net capital flow of 1.18 billion USD on Thursday. The strong capital flow along with the price increase has pushed the total net asset value of Bitcoin ETF products to over 141 billion USD as of the time of publication.

However, on-chain data shows that market sentiment remains quite cautious compared to previous growth cycles.

Specifically, according to the blockchain analysis company Glassnode, the Unrealized Profit/Loss index of long-term investors (LTH-NUPL) is currently at 0.69 – lower than the threshold of 0.75 which is often associated with extreme euphoria. In the current cycle, this index has only exceeded that threshold for 30 days, compared to 228 days in previous growth cycles.

“The current NUPL level indicates that although some long-term investors have taken profits, the majority have not yet reached a panic selling level as seen in previous price peaks – this suggests that prices may still rise further if they continue to accumulate,” Glassnode commented.

Long-term BTC holders NUPL | Source: Glassnode## Short-term investors are also not selling out

Similarly, the short-term investor group (STH) has not yet taken strong action to take profits, even though Bitcoin is at its peak. According to a report from CryptoQuant, the average purchase price of this group – measured by the "Realized Price of STH" index – currently hovers around the 100,000 USD mark.

The actual price for short-term BTC holders | Source: CryptoQuantWith the current rise, this group of investors typically tends to realize some unrealized profits. However, the "wait and see" attitude indicates that they are also choosing to hold – similar to the long-term investment group.

"The market has not shown any signs of overheating from the selling activities of short-term investors who are making a profit," a CryptoMe analyst noted.

CryptoQuant also reported that the open contract (OI) for Bitcoin has risen to the sky to 81.4 billion USD on Friday, after BTC surpassed the 112,000 USD mark earlier. However, the (funding rate) remains neutral – indicating that there is no wave of FOMO using high leverage.

"This reflects that investors are not jumping into long positions with high leverage due to FOMO sentiment," the report stated.

The cautious trading behavior of the current market indicates that the rise of Bitcoin is not yet influenced by excessive speculation as seen during the peaks in November and January before. This is a positive signal, opening up the possibility of maintaining a more sustainable upward trend.

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