Bitcoin reached new all-time highs last week, causing excitement among retail investors.
The cryptocurrency market has seen strong bullish sentiment following Donald Trump’s victory in the US presidential election, sending BTC to an all-time high of $84,000. With investor interest on the rise, here are three signs pointing to increased retail participation.
Signs of growing retail investor interest in cryptocurrency in November
First, Coinbase rose to 81st place in the Apple App Store. This is the first time Coinbase has cracked the top 100 since March.
Additionally, Google searches for Bitcoin have increased sharply, coinciding with recent price records. This surge in search volume indicates that more people are learning about Bitcoin as prices rise.
Finally, the past week has seen a surge in inflows into major cryptocurrency exchanges. Data from DeFiLlama shows that about $3.44 billion was invested on exchanges, with $1.75 billion going to Binance and $770.8 million going to Coinbase on Ethereum. This high influx of funds suggests that investors are preparing to buy or trade crypto assets, adding to the market momentum.
“Mark my words: retail is coming. BTC Retail Investor volume has increased, BTC Google searches have increased. This is how it starts. Everything starts with BTC and then flows from there. Bookmark this,” said one X user.
Market Factors Affecting Retail Interest
Bitcoin’s recent performance has further boosted confidence. Over the past week, Bitcoin has gained 20% and is currently trading at $82,000, with a market cap of over $1.6 trillion. Daily trading volumes have doubled to $92 billion and Bitcoin dominates the market at 52%. The cryptocurrency even overtook Meta to become the ninth largest asset by market capitalization at $1.6 trillion.
This rally has had a domino effect on the broader cryptocurrency market. Data from CoinGecko shows that the global cryptocurrency market capitalization has also increased, pushing it to $2.9 trillion, a level last seen in November 2021. Total cryptocurrency trading volume currently stands at $296 billion, suggesting growing interest from both retail and institutional participants.
Greed also moved higher, rising from 49 points last month to 76 points on November 11th. The Crypto Fear and Greed Index tracks Bitcoin market sentiment by analyzing data from volatility, trading volume, social media activity, and other metrics.
Greed in the market usually correlates with a bull market. Ironically, greed is usually accompanied by fear of missing out (FOMO), which causes investors to buy quickly.
Many believe this market surge could be due to FOMO, especially since Trump’s stance on cryptocurrencies has boosted confidence. Short liquidations have increased, reaching $630 billion in the last 24 hours, with $121 million liquidated in Bitcoin alone.
Historically, short liquidations can cause prices to rise, contributing to increased market volatility. As whale activity increases, data from IntoTheBlock shows that large holders accumulated around 32,000 BTC on November 10th.
“The road to $80K Bitcoin was paved by robust ETF demand. Not retail FOMO. A little fanfare. People buy ETFs, not sell them. This is sticky capital, HODL style. The level continues to rise,” said Cameron Winklevoss, co-founder of Gemini.
The results of US crypto ETFs last week were largely determined by the results of the presidential election. After Trump declared victory on November 5, Bitcoin and Ethereum spot ETFs reversed their trend.
Current retail interest, coupled with the growing appeal of Bitcoin as a mainstream asset, points to a potential expansion of the cryptocurrency market as new investors enter.
