Markets
No new retail investors are joining the crypto market, claims top trader – here’s what he thinks could change that
A closely followed trader says no new retail investors are entering the cryptocurrency market, but believes an event could attract newcomers.
Pseudonymous trader The Flow Horse it says his 217,800 followers on social media platformBitcoin) reaching six figures before new retail investors start entering the crypto market.
“No new retail investors are entering the market despite the memecoin frenzy, which represents just a fraction of total market volumes and is more of a buzz on crypto Twitter than a significant trend. For new retail investors to emerge, we need much higher prices on easily accessible large-cap pairs. Simply increasing the network’s assets by 10,000% doesn’t attract retail investors, just as random pink stocks doing the same don’t get people to bet on Robinhood or make the news. We need big, easily accessible names that move significantly. For that reason, I think Bitcoin probably needs to break $100,000 for people to take notice again.”
The merchant suggests The current cycle is also having difficulties attracting new market participants due to the previous cycle plagued by scandals, among other factors.
“I think absentee people get free money stuffed in their pockets à la government [stimulus]:
1. Each cycle, barring separate generations, means fewer and fewer new people to grab, as at some point we reach a level of global penetration.
2. If someone isn’t here yet, part of that reasoning is that they haven’t felt strongly compelled or provoked to do so. This usually occurs from seeing your friend/neighbor/co-worker get rich or the prices of the assets that are front and center rising much higher.
The excitement needs to reach the mainstream, and it’s reasonable to assume that we’re still trying to distance ourselves from the bad memories and stigma associated with the previous cycle.
This cycle seems to more ideally capture the larger, less price-sensitive passive types, for a more accumulative type of growth (with exchange-traded funds).”
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