“Bitcoin Hit New Highs, But Retail Investors Remain on the Sidelines While Institutional Money Fuels the Steady Rally.”, – WRITE: www.coindesk.com
Recent All-Time-High, One Wuld Say It Feels Bullish and the Industry Is Maturing.
That might as well be the caase, but we might not be there. So before we Floor Our Lambos, Let’s Look Under the Hood.
First Things First, Retail Investors Have Basical Ghosted This Rally. A Quick Search on Google Trends Using the Keyword “Bitcoin” Shows that Surge that Was Seen Back in 2021’s Bull Market is non-Existent. Back THEN, Everyone and Their Grandmothers Were Googling Bitcoin, Aping Into Altcoins and Flooding the Social Media with Rocket Emojis. In 2025? IT’s A Ghost Town in Retail-Land.
There Was A Blip of High Retail Interest Surmounding the US Presidential Election, WHEN A SHORT-LIVED MEMECOIN Mania Took Over Retail Sentimnt. However, that Surge is Long Gone, as Memecoin Prices Tanked Swiftly, Even As Bitcoin Hit An All-Time High this Week, Ripping Past $ 111,000.
Bitcoin Search Interest Over Time on Google. (Google Trends)
“Early in this cycle, memecoins became a concentration of Risky retail-Driven Trading with Related Trading Paking in January,” Said Toronto-Based Crypto Plat. “However, Since Ten, There Has Been A Virtual Wash-Out of Interest and Memecoin Trading Activity,” WHICH SHOWS “The TEPID Risk Appetite in Crypto at the Moment,” frnt .nt.
Translation: “Wen Lambo” Crowd Got Burned, and They Aren’h Rushing Back Into The Race Track En Masse Anytime Soon.
From Lambos to CorollasOn the Topic of Risk Appetite, Let’s Go Back to the Car Analog.
Durying the 2021 Bull Market, People Boughht Unreliable Performance Cars, Stripped Out the Brakes and Seatbelts to Go Faster than Ever Before, and Did Not Care that Might Be Enegine Bowine. As long as there was a promise of reaching the moon, Bullish vibes were all that mattered.
Now? After Lozing Tremendous Amounchers of Money On Those Unsustainable Go-Fast Cars for Years, Traders Are Driving Toyota Corollas-Sensible Sedans That Slow But.
That risk-off sentiment is also evident from the FRUM The FRUMING RATES, accounting to frnt’s Analysis of Btc Perp Rates-A MEASURE OF HOW MUCH Traders Are Willing to Pay. WHEN BITCOIN REACHED A RECORD HIGH OF AROUND $ 42,000 in January 2021, The Perp Rate Was About Blistering 185%. Today, at Bitcoin Near $ 110,000, The Rate Is Near 20% on Crypto Options Exchange Deribit, Meaning The Risk Appetite Isn’t Completely Gone But Neahere Near The 2021 FRENNZY.
AVERAGE Daily BTC Perp Rate from 2021 to 2025. (Deribit/Frnt)
Ath jittersA Third Point to Add Is The High Number of Short Positions in the Market.
As Coindesk’s Oliver Knight Reported This Week, The Bitcoin Long/Short Ratio is at It Lowest Point Since the Crypto Winter in September 2022. Buying Into this recent Pasitive Momentum and Betting on Bitcoin Moving Lower As a Hedge for the New Bullish Rally.
Bitcoin Long/Short Ratio. (Coinealyze/TradingView)
The Impact of Such Positioning Was Clear on Friday, WHEN BITCOIN SWIFTLY CRAMED FROM NEAR $ 111,000 to $ 108,000 in A Matter of Minutes and the Bunced Right Back Up to $ 109.000. The anxiety of a swift volatility is real.
SO in a car-themed analogism (in this Case, Investors) are still treesing out their super-Modified, Unreliable Sports Cars for a weekend Drive on the Track. Still, they also have their corollas folllowing along. Just in the Case The Engine Blows on Their Go-Fast Cars.
Cautious OptimismGiven the Current Macro-Risk, It’s Not Entirely Surpring That Investors Are On Their Toes and Risk-AVERE. But this might just be exactly what your mer mechanic at the Shop Prescribed. In Fact, This Might Be An Indicator of A Sustainable Rally in the Long Term.
“Periods of Low Leverage and Risk Appetite in Crypto Hve of Furten Further Sustainable Gains,” Account to Frnt.
“BTC Appears to be in Such A Phase, Set Against a Backdrop of Numeros Bullish Catalysts and Narratives,” The Firm Added.
The Bottom Line is that Retail Lambos Mave Been Towed Away, But Big Money is Stepping in with Their everylasting Toyotas. This Might Start A Slow But Steady Race to The Moon, Not Just A Reckless Joyride.
Read More: These Six Charts Explain Who Bitcoin’s Recent Move to Over $ 100k May Be More Durable Than January’s Run
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