Bitcoin Reaches Record High of Over $111,000 Amid Retail Investor Absence
Retail interest in cryptocurrency has significantly declined despite bitcoin reaching an all-time high of over $111,000. Key points include:
- Google Trends indicates low retail engagement in crypto compared to the 2021 bull market.
- A brief spike in retail activity occurred during the U.S. presidential election, but interest quickly faded.
- FRNT Financial noted a decrease in memecoin trading, reflecting a cautious risk appetite among retail investors.
The current market sentiment resembles that of cautious drivers opting for reliable cars instead of high-risk vehicles. Funding rates for maintaining long positions have dropped from 185% in January 2021 to around 20% now, indicating reduced risk tolerance.
Additionally, the bitcoin long/short ratio is at its lowest since September 2022, with many traders betting against further price increases. A recent dip in bitcoin's price exemplifies this volatility.
Despite these factors, FRNT suggests that periods of low leverage and risk appetite often precede sustainable gains, indicating potential for long-term growth amid current caution.