🧠 A Fed experiment found something pretty wild about Bitcoin.
A study by the Federal Reserve Bank of Cleveland found that simply showing participants Bitcoin profits or a price chart increased their likelihood of self-reporting they owned crypto by about 2.4 percentage points.
Initial ownership was only about 11%.
In other words:
Show people green candles → suddenly they want Bitcoin. 💀
The study also found that information about Bitcoin performance boosted expectations for crypto returns next year by about 3.2 percentage points.
The strongest effect showed up in people who previously said they didn’t invest in crypto because they didn’t know enough about it.
I found this part especially striking:
Positive returns attract new buyers → new buyers can push prices higher → higher prices attract even more buyers.
Basically:
Bitcoin pumps → people notice → people buy → Bitcoin pumps harder.
The Fed accidentally discovered the FOMO machine. 😭
But the question is:
If some of the new demand comes from seeing the price go up, what happens when the chart turns red? 👀
$BTC
#Fed #BrainrotCrypto
A study by the Federal Reserve Bank of Cleveland found that simply showing participants Bitcoin profits or a price chart increased their likelihood of self-reporting they owned crypto by about 2.4 percentage points.
Initial ownership was only about 11%.
In other words:
Show people green candles → suddenly they want Bitcoin. 💀
The study also found that information about Bitcoin performance boosted expectations for crypto returns next year by about 3.2 percentage points.
The strongest effect showed up in people who previously said they didn’t invest in crypto because they didn’t know enough about it.
I found this part especially striking:
Positive returns attract new buyers → new buyers can push prices higher → higher prices attract even more buyers.
Basically:
Bitcoin pumps → people notice → people buy → Bitcoin pumps harder.
The Fed accidentally discovered the FOMO machine. 😭
But the question is:
If some of the new demand comes from seeing the price go up, what happens when the chart turns red? 👀
$BTC
#Fed #BrainrotCrypto