Recent pro-crypto announcements by Donald Trump have driven Bitcoin's value close to $100,000, rekindling market interest. However, analysts believe retail investors remain cautious.
Current Bitcoin Market Situation
According to a Bloomberg report, retail trading activity in Bitcoin has increased significantly following Trump's announcements. As noted by eToro analyst Josh Gilbert, 'interest is clearly growing, but we have yet to reach peak levels of previous cycles.' Metrics like South Korea’s Kimchi premium show no significant price differences currently, contrasting with past trading frenzies.
NFT Interest Decline
The global NFT market is experiencing a significant downturn, with an index tracking market activity now at about one-fifth of its all-time high. This indicates a substantial decline in investor interest and activity in the space.
Prospects for Retail Investors
Despite the increase in institutional demand driving Bitcoin's market cap jump to $1 trillion, industry insiders observe signs of retail investor re-engagement. Crypto app downloads are surging, and dormant trading accounts are reactivating. Trump’s administration promises friendlier regulations and a strategic US Bitcoin stockpile, which fuels optimism. However, retail FOMO has not yet returned to 2021 levels.
Trump's pro-crypto stance is already positively impacting the cryptocurrency market, creating opportunities for recovery. However, it will take more time and additional policy changes for retail investors to return actively.
