Retail traders on Robinhood have been increasingly seeing “fear of missing out” or FOMO rallies around certain stocks. The latest beneficiary has been the stock price of the renowned camera manufacturer Kodak (KODK) whose stock surged from $2 to $60 in one day.
Therefore, given the current climate of economic uncertainty and “infinite QE,” if the optimism around risk-assets flows over to Bitcoin, chances of a similar rally for BTC price — as some analysts are currently predicting — certainly increase.
Moreover, following the Federal Reserve’s FOMC meeting on July 29, strategists expect the overall sentiment of investors to recover, which is good news for Bitcoin bulls given the recent correlation between Bitcoin and stocks.
Bitcoin investor reacts to the Kodak rally. Source: Jason Williams
Why Kodak saw a parabolic rally and why some BTC investors expect the same
On July 28, U.S. President Donald Trump said Kodak would receive a $765 million loan to create Kodak Pharmaceuticals. Kodak has been producing materials and chemical products for quite some time.
Kodak shifted away from the camera industry in 2013, and President Trump’s message further solidified Kodak’s presence in pharmaceutics. It came after the government decided to decrease the dependence of the U.S. on drug manufacturers in overseas markets.
Consequently, Kodak saw a rally that even outperformed the 2017 parabolic uptrend of Bitcoin.