The term “JOMO” refers to the joy of missing out, especially when a bitcoin trader chooses not to go with the flow. It’s the antithesis of FOMO, or the fear of missing out, and it serves as a check on price increases fueled by excitement and frenzy.
In cryptocurrency trading, JOMO results from refusing to go along with the crowd, which is frequently mistaken, and preventing a potentially substantial loss. For instance, the numerous bullish calls in the Bitcoin market during the bull run in 2020–2021 probably encouraged many people to buy at the top in anticipation of further gains.
In 2021, a lot of market analysts, including those at Standard Chartered and JPMorgan Bank, expected that Bitcoin would cost $100,000 by the end of the year. With its consistency throughout the majority of Bitcoin’s bull and market cycles, the widely followed stock-to-flow model strengthened the bullish case even further.
However, after reaching a high of $69,000 in November 2021 and declining by 60% since then, Bitcoin’s price fell short of the widely favored $100,000 target. As a result, the JOMO traders who either sold or refrained from buying into the rally at the time won. In addition, they kept enough money in reserve to invest when FOMO is nonexistent, such in June 2022, when Bitcoin’s most recent price bottom was reached.
Market observer Michael Gogol was one of the few JOMO traders who didn’t buy into the too rosy Bitcoin projections in late 2021. A month before Bitcoin’s peak, he cut back on his exposure to cryptocurrencies and expressed his relief in May 2022.
Yet, one trader admitted that he had purchased Bitcoin in October 2021 at a price of $60,000 after being persuaded by the market’s anti-inflation narrative. He stated: “Now, the entire inflation thing made sense. I panicked and almost entered at 69k ATH. feels awful. spent hours researching and fell down the rabbit hole.”
Making quick money is the motivation behind FOMO. Many foolish traders think that investing in cryptocurrencies will enable them to double or triple their investments in a matter of days, weeks, or months. Typically, traders that suffer from FOMO syndrome may open or close their deals several times every day without giving them much consideration or strategy. These high-risk trades have an effect on traders’ mental health as well, even causing stress and lack of sleep.