A cryptocurrency market that experienced a significant upward trend is said to be “mooning,” a term frequently used as a verb. “To the moon” is a phrase that often relates to a firm conviction that the price of a particular cryptocurrency will soon increase dramatically.
Let’s learn what this phrase means in this blog.
Birth of the “to the moon” Phrase
The cryptocurrency and financial ecosystems have given birth to several words and colloquialisms, just like many other specialized fields (slang and memes). The phrase “to the moon” is often used within the cryptocurrency market community, particularly among investors and traders, even though it is not only for the blockchain business.
However, “to the moon” is overused because a clear upward tendency is not always there. It’s necessary to note that many cryptocurrency India supporters and influencers use the term to convince people online via social media that a particular token or coin is about to fly to the moon. In reality, however, most are just “shilling their bags,” trying to sway the markets in favor of their assets.
This phenomenon was most noticeable during the 2017 bull market, when traders, investors, and even the general public became thrilled about the rising value of the top cryptocurrency in India and the price of Bitcoin.
How Does Crypto Gain that Much Value To Go’to the moon’?
Mooning can be beneficial when you have the right cryptocurrency; however, why and how does one cryptocurrency gain in value while another might fall? The same factors that define value in other markets also decide more or less on demand and supply.
Holders of a particular cryptocurrency (supply) may demand a higher price on the cryptocurrency exchange India when there are more buyers (Demand). The supply and Demand for NFTs, houses, vehicles, and the stock market will also determine value and prices.
Some Examples of “to the moon” Cryptos
Depending on how you define “mooning,” cryptocurrencies frequently engage in it. For example, we already mentioned one of the top 5 cryptocurrency in India, Bitcoin’s mooning in 2017. But here are a few more examples:
From about $0.01 in January 2021 to more than $0.70 in May 2021, Dogecoin’s (DOGE) price increased.
Also, in 2021, the value of Ethereum (ETH) “mooned,” increasing from less than $1,000 to about $5,000 between January and October 2021.
Reasons Behind Cryptos Going “To the Moon”
1 Hype/Fear of Missing Out (FOMO)
One of the main factors that cause a cryptocurrency to hype is when it is pushed up by a marketing company, an influential investor, or even an acquaintance. When an item is adequately hyped, the price will undoubtedly increase as investors want to get in on the action before it explodes as predicted.
Then, in addition to the excitement, we experience fear of missing out, or as commonly known, FOMO. It may cause people who have yet to invest in feeling like they are losing out on a chance, which may push them to begin purchasing.
Hype and FOMO, by themselves, can send cryptocurrency to the moon. However, remember that assets that move due to FOMO and excitement nearly invariably return to Earth.
2 New Partnerships
Another logical reason for a virtual currency to soar is if it enters with other blockchain projects, organizations, and governments into strategic partnerships.
News and announcements are more reasonable justifications for a crypto asset to soar. However, this could imply several things.
Any specific actions that will increase the asset’s value and utility can be announced by a project, such as switching to their chain, airdropping new tokens to stakeholders, changing the network’s protocols, or migrating to their chain. As investors predict the coin or token’s future worth, the price rises incredibly.
4 Bull Run/Market
The most evident justification for cryptocurrency’s rise to the moon is this. It is called a bull run when the market is soaring or predicted to rise.
When a new high is achieved, the run can stretch past the moon, but prices will eventually fall, so be careful when investing in a bull market. In this scenario, the “bulls” are buyers who sense an opportunity and start buying crypto, pushing it to record new highs.
A Cautionary Story
The year 2022 has been very different hear for crypto. Cryptocurrency prices have been hit hard rather than soaring “to the moon.” Inflation has ended the early pandemic’s easy money and investing period. Higher interest rates are putting downward pressure on asset prices, especially high-growth, highly volatile assets such as cryptocurrencies that are still relatively new in the investment world.
That doesn’t mean crypto is dead. It’s likely to have another heyday at some time in the future. “Mooning” could make a comeback. But remember to keep a level head when that time comes. Investments don’t skyrocket to the moon forever. Eventually, gravity injects some reality back into the mix, and prices normalize — or even crash and completely reverse soaring investment gains.
Don’t pile all in when others trumpet “to the moon.” Even when crypto seems to be the best game in town, maintaining discipline and having a diversified investment portfolio with multiple investment classes, such as stocks and bonds, is vital.
In the cryptocurrency ecosystem, the Indian cryptocurrency coin that has experienced a sharp increase in value is referred to as going to the moon.
“To the moon” is just one phrase insiders use in crypto. You can learn more about such terms in the Bitcoiva blog.
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