One closely watched trader says no new retail investors are joining the cryptocurrency market, but believes an event could attract newbies.
Pseudonymous trader The Flow Horse says his 217,800 followers on social media platformbtc) reaching six figures before new retail investors begin to enter the cryptocurrency market.
“There are no new retail investors entering the market, despite the memecoin frenzy, which represents only a fraction of the total market volume and is more of a rumor on crypto Twitter than a significant trend. For new retail investors to come, we need much higher prices on easily accessible, large-cap pairs. Simply driving on-chain assets up 10,000% doesn't attract retail investors, just like random pink sheet stocks doing the same thing doesn't get people into Robinhood or making the news. We need big, easily accessible names moving significantly. For that reason, I think Bitcoin probably needs to break above $100,000 for people to take notice again.”
the trader suggests The current cycle is also having a harder time attracting new market entrants due to the scandal-plagued previous cycle, among other factors.
“I think absentee people get free money in their pockets government style. [stimulus]:
1. Each cycle, unless there is a generation difference, means fewer and fewer new people to recruit, as at some point we reach a level of global penetration.
2. If someone is not here yet, part of the reasoning is that they have not felt strongly compelled or provoked to do so. That usually happens by watching your friend/neighbor/coworker get stupidly rich or by watching the asset prices front and center go much higher.
The hype 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 more to capture the larger, less price-sensitive passive types, for a more accretive type of growth (with exchange-traded funds).”
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