Bitcoin price hit 2023 high, so why are retail traders waiting on the sidelines?
Bitcoin price keeps going up, but retail traders are not piling in yet. Cointelegraph explores why.
The total market capitalization of the cryptocurrency market surged past $1.55 trillion on Dec. 5, driven by remarkable weekly gains of 14.5% for Bitcoin (BTC) and 11% for Ether (ETH).
Despite the recent bullish momentum, analysts have observed that retail demand remains relatively stagnant.
Retail investors aren’t paying attention to #bitcoin.
They are more worried about whether or not they will be able to pay rent or put food on the table.
They will likely start paying attention near the next top (IMO sometime in 2025) and they will FOMO into a position before…
— Rajat Soni, CFA (@rajatsonifnance) December 2, 2023
Numerous United States economic indicators have surged to record highs, including wages, salaries and household net worth. However, analyst Ed Yardeni suggested that the “Santa Claus rally” might have already occurred earlier this year, with the S&P 500 gaining 8.9% in November.
This rise reflected diminishing inflationary pressures and robust employment data.
Did retail traders miss Bitcoin’s and Ether’s recent gains?
With no dependable indicator to track retail participation in cryptocurrencies, a comprehensive data set is necessary for making conclusions, beyond relying solely on Google Trends and crypto-related app download rankings.
