What is JOMO in crypto trading?
JOMO stands for the joy of missing out — particularly when a cryptocurrency trader refuses to follow the crowd. It’s the opposite of FOMO or fear of missing out, and it’s the counterbalance to price rallies driven by hype and frenzy.
What is JOMO in crypto trading?
In crypto trading, JOMO stems from not following the herd — which is often wrong — and avoiding a potentially significant loss.
For example, the frequent bullish calls in the Bitcoin market during the 2020–2021 bull run likely prompted many people to buy at the top, expecting more upside.
Many market commentators, including analysts at Standard Chartered and JPMorgan Chase, predicted in 2021 that Bitcoin’s (BTC) price would reach $100,000 by the end of the year. The widely-tracked stock-to-flow model further boosted the bullish argument, given its accuracy through most of Bitcoin’s bull and bear cycles.
However, Bitcoin’s price fell short of its popular $100,000 target after peaking out in November 2021 at $69,000, down 60% since.
Thus, the JOMO traders who either sold or didn’t buy into the rally at the time came out on top. Moreover, they retained the capital to get in at lower levels when FOMO was nonexistent, such as in June 2022, which marked Bitcoin’s latest price bottom.
JOMO after Bitcoin price peak
Market watcher Michael Gogol was one of the few JOMO traders who didn’t buy into the overly-optimistic Bitcoin predictions in late 2021. He reduced his crypto exposure a month before Bitcoin’s peak, expressing his relief in May 2022.
Called the top in 2021 and 2022.
Not bad not bad. I’m proud. pic.twitter.com/ZZe5E445Sz— Michael Gogel (@mgogel)
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