The reason is because many people think trading crypto will make them a millionaire and so they start investing in altcoins thinking they are cheap.
They don't realize the fact that it's the trust on bitcoin that has kept it at the top and altcoins cannot be trusted so easily.
People lose money in altcoins and since they are more volatile, people panic sell and encounter losses.
The truth is, it's their greed which causes them to suffer while the easy way still is to invest in bitcoin.
Topic: Retail investors mostly absent from the market in 2024? (Read 155 times)
Small cap investors are at a loss if they are going to buy at anything above 90k USD for the time being. This is first time bitcoin touched this level and crossed it and hence we cannot normalize this level for buying. Maybe we will touch 100k and cross it but for now the easier thing for retail investors to do is to wait it out and see where the price starts facing resistance and then drops back to another support level.
So going by that idea, maybe retail investors have been low in number in 2024 - does not necessarily mean they all went into shitcoins. There are traditional markets to invest in too.
Retail investors can be experienced or newbies, and newbie retail investors mostly join in very last phase of a market bull run. They basically spend a lot of time to watch the market, read news, consider to join or stay outside, and after a long time of consideration, hesitation they join the market around top price range. These phases are Enthusiasm and Euphoria, see the graphic.So going by that idea, maybe retail investors have been low in number in 2024 - does not necessarily mean they all went into shitcoins. There are traditional markets to invest in too.
Participation of retail investors especially newbie retail investors, is considered as signal of market peak and the end of bull run.
Psychology of market cycles.
Small cap investors are at a loss if they are going to buy at anything above 90k USD for the time being. This is first time bitcoin touched this level and crossed it and hence we cannot normalize this level for buying. Maybe we will touch 100k and cross it but for now the easier thing for retail investors to do is to wait it out and see where the price starts facing resistance and then drops back to another support level.
So going by that idea, maybe retail investors have been low in number in 2024 - does not necessarily mean they all went into shitcoins. There are traditional markets to invest in too.
So going by that idea, maybe retail investors have been low in number in 2024 - does not necessarily mean they all went into shitcoins. There are traditional markets to invest in too.
I'm sure Bitcoin is full of both professional institutional investors and retail investors. It's a strong currency, a high-performing asset. I am sorry for those putting money into altcoins and risking, often losing. Is there any evidence behind the assumption that retail investors are manly absent from the Bitcoin market this year? From the articles that I see (like this one on CNN), it seems like the opposite might be true and retail investors might be largely behind the current bull run, actually.
Retail investors still involve in Bitcoin although we don't know for sure. Who doesn't want to make a profit through Bitcoin if they can and have that chance? I am sure they still want to involve in Bitcoin and trying to make more and more profit especially the Bitcoin price now increase.
Profit or money that is the reason for them to still involve in Bitcoin and even Bitcoin price reach the high price, that doesn't mean people will stop to make a profit because they know that the price will go up and down so they will not want to miss that chance to make a profit.
Some people still use altcoin as a long term investment but that is only for the altcoin that have potential to increase in the future. You see Ethereum is the next choice for people to use it as their investment besides of the other altcoin. Other people choose memecoins as their investment so that will be up to them which coins that they will choose as their investment.
Profit or money that is the reason for them to still involve in Bitcoin and even Bitcoin price reach the high price, that doesn't mean people will stop to make a profit because they know that the price will go up and down so they will not want to miss that chance to make a profit.
Some people still use altcoin as a long term investment but that is only for the altcoin that have potential to increase in the future. You see Ethereum is the next choice for people to use it as their investment besides of the other altcoin. Other people choose memecoins as their investment so that will be up to them which coins that they will choose as their investment.
Im not sure if retail is not part of the cycle so far. Just from own experience I’d say that retail is at least beginning to join the ‘party’. News outlets should be taken with a grain of salt imo.
In any financial market, retail investors always make up the majority and can be said to be the most abundant source of liquidity for the market. Market makers always come up with attractive games to attract retail investors by all means because without them there would be no liquidity, so I don't believe any market can be vibrant or become big without retail.
Bitcoin hitting $100k and various shitcoins giving million percent returns making many people rich from just a few dollars will be the stories we will hear the most in the near future. Those will be the stories that attract retail investors into the market.
If OP checks Google search trends, he will see that the search trend for bitcoin or crypto is increasing as BlackBoss_ mentioned and this trend will increase significantly when bitcoin hits $100,000 and more get rich quick stories from crypto.
Institutional investors and the government have a better understanding of the market, so they were well prepared for the bull run. Retail investors are mostly driven by the increase in price. Some individuals will never invest in Bitcoin when the price is dropping. But they are moved to buy when they see the price going high. As the news of the bull run keeps trending, retail investors will begin to put in more money.
I can't imagine treating any shitcoin as a long term investment like millions do with bitcoin.
Only ignorant newbies will consider shitcoins as a long term asset. A quick search on the internet will enlighten a newbie that Bitcoin is the most reliable crypto investment that can be kept for a long time. 
That is the mantra I heard repeated ad nauseum by pundits and media through most of 2024.
They say the digital asset market was driven largely by governments and institutions this year, with a notable absence of retail.
Retail investors are coming.They say the digital asset market was driven largely by governments and institutions this year, with a notable absence of retail.
Bitcoin transaction volume under $100K hit a 3-year high.
Google trend search on Bitcoin worldwide is not too impressive but it's on the rising trend.
https://trends.google.com/trends/explore?date=all&q=bitcoin&hl=en
Bitcoin bubble index with some more indicator for the index, not only Google Trend.
https://www.coinglass.com/pro/i/bitcoinBubble
Im not sure if retail is not part of the cycle so far. Just from own experience I’d say that retail is at least beginning to join the ‘party’. News outlets should be taken with a grain of salt imo.
Bitcoin is already volatile enough, why people want to get involved with crap that is two to ten times more volatile is beyond me.
In the long run they will lose money. Might as well throw all your money on the roulette wheel in Las Vegas.
I can't imagine treating any shitcoin as a long term investment like millions do with bitcoin.
In the long run they will lose money. Might as well throw all your money on the roulette wheel in Las Vegas.
I can't imagine treating any shitcoin as a long term investment like millions do with bitcoin.
People are joining the industry with very high expectations because they got to know about the market by the testimony of people making lots of profits from the market. Retails investors are more into altcoins and they specialized in memecoins, there are many tokens that should not be worth a penny but they have millions of market cap. Some notable exchanges are also encouraging this behaviour by listening them and giving early investors lots of profits. The news spread and more retail investors search for the next memecoin to give this profits. There is a misconceptions that everything rises during the bull market therefore people are investing into everything that they see without considering that the tokens that they are buying might not rise.
That is the mantra I heard repeated ad nauseum by pundits and media through most of 2024.
They say the digital asset market was driven largely by governments and institutions this year, with a notable absence of retail.
They say the digital asset market was driven largely by governments and institutions this year, with a notable absence of retail.
institutional investors use OTC or private trade direct with mining pools. they dont trade on CEX to any large amount
the retail market IS the CEX market
what people need to realise is if they are looking at cex btc volume charts. it may seem lower than previous years.. however if you measure it in a fiat price of said btc you will realise that more trades for more $$ have been made compared to those previous years, meaning that trade volume is actually higher as more money has changed hands
simplified example:
imagine i bought 1.5btc each month in 2020, but only bought 0.5btc each month in q3-q4 of 2024
in 2020 1btc was ~$10k meaning $15k average investment monthly 2020
in q3-4 2024 1btc was ~$75k meaning $37.5k average investment monthly 2024
so 2.5x more invested
That's the reason why Bitcoin is the King.
These retail investors who went to some altcoins hoping for higher rewards for sure will realize what they missed on Bitcoin.
This is the same mistake I did way back around 2017-2018, I already learned my lesson.
These retail investors who went to some altcoins hoping for higher rewards for sure will realize what they missed on Bitcoin.
This is the same mistake I did way back around 2017-2018, I already learned my lesson.
That is the mantra I heard repeated ad nauseum by pundits and media through most of 2024.
They say the digital asset market was driven largely by governments and institutions this year, with a notable absence of retail.
But what they don't mention is that retail has always had a strong presence in the shitcoin casino.
Since institutions tend to deal with only bitcoin, the shitcoin casino is almost exclusively left to retail.
Bitcoin dominance has been 55-60% in 2024 so the remaining 40-45% are retail which is by no means insignificant.
Bitcoin is already volatile enough, why people want to get involved with crap that is two to ten times more volatile is beyond me.
In the long run they will lose money. Might as well throw all your money on the roulette wheel in Las Vegas.
I can't imagine treating any shitcoin as a long term investment like millions do with bitcoin.
They say the digital asset market was driven largely by governments and institutions this year, with a notable absence of retail.
But what they don't mention is that retail has always had a strong presence in the shitcoin casino.
Since institutions tend to deal with only bitcoin, the shitcoin casino is almost exclusively left to retail.
Bitcoin dominance has been 55-60% in 2024 so the remaining 40-45% are retail which is by no means insignificant.
Bitcoin is already volatile enough, why people want to get involved with crap that is two to ten times more volatile is beyond me.
In the long run they will lose money. Might as well throw all your money on the roulette wheel in Las Vegas.
I can't imagine treating any shitcoin as a long term investment like millions do with bitcoin.
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