Bitcoin has been hitting new all-time highs this past week, sparking excitement among retail investors.
The crypto market has recorded strong bullish sentiment following Donald Trump’s win in the US presidential election, driving BTC to an all-time high of $84,000. As investor interest surges, here are three signs indicating a rise in retail involvement.
Signs Retail Investor Interest in Crypto is Rising in November
Firstly, Coinbase has jumped to rank 81 on the Apple App Store. This marks the first time Coinbase has broken into the top 100 since March.
Additionally, Google searches for Bitcoin have surged, coinciding with its recent price records. This surge in search volume indicates that more people are exploring Bitcoin as prices rise.
Finally, the past week saw a sharp increase in inflows to major crypto exchanges. Data from DeFiLlama shows approximately $3.44 billion USDT injected into exchanges, with $1.75 billion sent to Binance and $770.8 million to Coinbase on Ethereum. This high inflow of funds suggests that investors are preparing to buy or trade crypto assets, adding to the market’s momentum.
“Mark My Words, Retail is Coming. BTC Retail Investor volume up, BTC Google searches up. This is how it starts. It starts with BTC, then it flows from there. Bookmark this,” said one X user.
Market Factors Impacting 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 surpassing $1.6 trillion. Daily trading volumes have doubled, reaching $92 billion, while Bitcoin’s market dominance sits at 52%. The cryptocurrency even overtook Meta, becoming the ninth-largest asset by market cap at $1.6 trillion.
This rally has had a domino effect on the wider crypto market. Data from CoinGecko shows that the global crypto market cap has also increased, pushing it to the $2.9 trillion mark — levels last seen in November 2021. The total crypto trading volume is currently at $296 billion, suggesting rising interest from both retail and institutional participants.
Greed has also taken an upward turn, moving from 49 points last month to 76 points on November 11. The Crypto Fear and Greed Index tracks Bitcoin market sentiment through data analysis of volatility, trading volume, social media activity, and other metrics.
Greed in a market is typically correlated with a bull market. Ironically, greed is usually accompanied by fear of missing out (FOMO), driving investors to buy quickly.
Many believe this market surge may be fueled by FOMO, especially as Trump’s pro-crypto stance has boosted confidence. Short liquidations have risen, reaching $630 billion over the past 24 hours, with Bitcoin alone seeing $121 million in liquidations.
Historically, short liquidations can propel prices upward, contributing to increased market volatility. With whale activity on the rise, data from IntoTheBlock shows large holders accumulated nearly 32,000 BTC on November 10.
“The road to $80k bitcoin was paved with steady ETF demand. Not retail FOMO. Little fanfare. People buy ETFs, they don’t sell them. This is sticky HODL-like capital. Floor keeps rising,” Cameron Winklevoss, Gemini co-founder stated.
The performance of US crypto ETFs last week was largely determined by the outcome of the presidential elections. After Trump declared his victory on November 5, spot Bitcoin and Ethereum ETFs reversed their trend.
The current retail interest, combined with Bitcoin’s growing appeal as a major asset, points to a potential expansion of the crypto market as new investors dive in.
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