Bitcoin’s meteoric rise, nearing $100,000 after President-elect Donald Trump’s pro-crypto policy announcements, has reinvigorated the market. Yet, analysts believe that retail investors remain cautious, with activity still below the peaks of the 2021 boom.
According to a Bloomberg report, a market analyst at eToro Josh Gilbert said, “from a retail perspective, interest is clearly growing as trading in Bitcoin has picked up significantly.” He further said, “we are yet to see the levels we’ve seen in previous cycles, which signals that we’ve got a wave of retail investors still sitting on the sidelines watching.”
Metrics like South Korea’s Kimchi premium, which measures the difference between Bitcoin’s domestic price and its offshore cost, is currently non-existent, a stark contrast to the inflated premiums seen during trading frenzies.
Similarly, the global market for nonfungible tokens (NFTs) — blockchain-based digital assets often tied to collectibles — is experiencing a significant downturn. A global index tracking NFT market activity now sits at approximately one-fifth of its all-time high, reflecting diminished investor interest and activity in this space.
While institutional demand has driven Bitcoin’s $1 trillion market cap jump, some industry insiders see signs of retail investor re-engagement. Popular altcoin Solana recently hit a record high, crypto app downloads surged, and dormant trading accounts have been reactivated, according to BTC Markets CEO Caroline Bowler.
Trump’s promise of friendlier regulations and a strategic US Bitcoin stockpile has fueled optimism. Notably, crypto entrepreneur Justin Sun invested $30 million in Trump’s World Liberty Financial project, expressing confidence in the administration’s understanding of the sector.
“Retail FOMO hasn’t returned to 2021 levels,” said Jupiter Zheng of HashKey Capital, adding that only select altcoins are performing well. Still, Trump’s platform is expected to draw more attention to crypto, with the sector poised for a broader retail resurgence.
