Bitcoin has experienced a remarkable ascent, approaching the $100,000 mark following President-elect Donald Trump’s announcements of pro-crypto policies, thereby revitalizing the market. However, analysts note that retail investors are still exercising caution, as their activity lags behind the peaks witnessed during the 2021 boom.
A Bloomberg report indicates that Josh Gilbert, a market analyst at eToro, stated, “From a retail standpoint, it is evident that interest is on the rise as Bitcoin trading has seen a significant uptick.” He further elaborated, “We have not yet reached the levels seen in previous cycles, suggesting that a multitude of retail investors are still observing from the sidelines.”
The Kimchi premium in South Korea, which gauges the disparity between Bitcoin’s domestic and offshore prices, currently stands at zero. This is in sharp contrast to the inflated premiums observed during periods of intense trading.
Concurrently, the global market for nonfungible tokens (NFTs), which are blockchain-based digital assets often associated with collectibles, is encountering a substantial downturn. A global index tracking NFT market activity is presently around one-fifth of its all-time high, mirroring the waning interest and activity of investors in this domain.
While institutional demand has propelled Bitcoin’s market capitalization to a $1 trillion increase, some industry insiders detect indications of retail investors re-entering the fray. Solana, a popular altcoin, recently reached a record high, there has been a surge in crypto app downloads, and dormant trading accounts have been reactivated, as reported by BTC Markets CEO Caroline Bowler.
Trump’s pledge of more favorable regulations and a strategic US Bitcoin stockpile has kindled optimism. Notably, crypto entrepreneur Justin Sun invested $30 million in Trump’s World Liberty Financial project, expressing confidence in the administration’s comprehension of the sector.
Jupiter Zheng of HashKey Capital remarked, “Retail FOMO has not returned to 2021 levels,” adding that only certain altcoins are performing well. Nevertheless, Trump’s platform is anticipated to direct more attention to crypto, positioning the sector for a more extensive retail revival.
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