Recent statements from CryptoQuant suggest that retail investors' participation through ETFs may alter traditional perceptions of the Bitcoin market.
CryptoQuant's Market Position
CryptoQuant founder Ki Young Ju stated that the Bitcoin bull cycle might end without due regard to alternative investment channels. He noted that traditional analysis of off-chain retail investor activity might be outdated under current conditions.
ETF Role for Retail Investors
Ju noted that retail investors entering through ETFs — the so-called 'paper Bitcoin layer' — aren't visible in on-chain data, as 80% of ETF flows are from retail investors. This has kept the realized cap lower than if funds directly went to exchanges.
Indicators and Market Activity
Traders often use retail investor activity to spot market overheating signs. One indicator is the Fear and Greed Index, which has recently dropped. Additionally, Google search trends for 'crypto' and the popularity of crypto apps in app stores are analyzed.
The expansion of retail participation through ETFs alters traditional views on the Bitcoin market and requires adaptation of analysis strategies.
