The recent price surge of Bitcoin raises questions about the current interest of retail investors. While the cryptocurrency's price has reached new records, the attention from regular traders has noticeably waned.
Record Highs of Bitcoin and Interest
Bitcoin has reached an all-time high, surpassing $118,000, but, as André Dragosz, head of research at Bitwise in Europe, notes, retail investors are "barely visible." He also indicated a decline in interest for the search term "Bitcoin" on Google.
Institutional Investments and ETFs
Dragosz highlighted that the recent rise is mainly driven by institutional investors. Significant inflows have been noted into exchange-traded funds (ETFs) in recent days. On July 10 and 11, U.S. spot Bitcoin ETFs attracted $1.18 billion and $1.03 billion respectively, bringing cumulative inflows to a record $52.36 billion.
Market Cycles and Their Impact on Retail Traders
According to Xapo Bank CEO Seamus Rocca, market cycles of new all-time highs followed by deep corrections remain consistent. He believes the risk of a prolonged bear market is very real and can be triggered by simple factors such as a slowdown in news. Rocca also stated, "We all want to think Bitcoin is an inflation-protection tool, and I believe it will be one day. But I'm not sure if we've already achieved that."
These events highlight the importance of monitoring investment flows in cryptocurrencies and the growing interest from institutional investors, which contrasts with the waning interest from retail traders.
