Last week, Bitcoin hit a new all-time high, sparking excitement among retail investors.
After Donald Trump's victory in the US presidential election, the cryptocurrency market has seen a strong upward trend, with BTC reaching an all-time high of $84,000. As investor interest has increased, there are three signals indicating an increase in retail participation.
Increased Retail Investor Interest in Cryptocurrencies in November
First, Coinbase surged to rank 81st on the Apple App Store. This is the first time Coinbase has been in the top 100 since March.
Additionally, Google searches for Bitcoin have spiked. This indicates that more people are exploring Bitcoin along with the price increase.
Finally, last week saw a sharp influx of funds into major cryptocurrency exchanges. According to data from defillama, about $3.44 billion in USDT was injected into exchanges, with $1.75 billion going to Binance and $778 million being transferred to Coinbase through Ethereum. This inflow of funds suggests that investors are preparing to purchase or trade cryptocurrency assets, adding momentum to the market.
"Retail is coming. Increased BTC retail investor volume, increased BTC Google searches. This is how it starts. It starts with BTC and then it flows from there. Bookmark this," a X user said.
Market Factors Influencing Retail Interest
Bitcoin's recent performance has further strengthened the confidence of these retail investors. Over the past week, Bitcoin has risen by 20% and is currently trading at $82,000. The market capitalization has surpassed $1.6 trillion. Daily trading volume has doubled to $92 billion, and Bitcoin's market dominance is 52%. Cryptocurrencies have even surpassed Meta to become the ninth-largest asset in the world with a market cap of $1.6 trillion.
This rally has had a domino effect across the cryptocurrency market. According to CoinGecko's data, the global cryptocurrency market capitalization has also increased, reaching $2.9 trillion, the first time since November 2021. The current total cryptocurrency trading volume is $296 billion, suggesting increased interest from both retail and institutional participants.
Greed has also been on the rise, climbing 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, and social media activity, among other factors.
Greed in the market is generally associated with a bull market. Ironically, greed is often accompanied by the fear of missing out (FOMO), which can drive investors to buy quickly.
With Trump's pro-cryptocurrency stance seen as boosting confidence, this market surge may have been triggered by FOMO. Over the past 24 hours, short liquidations have reached $63 billion, with $121 million in liquidations in the Bitcoin derivatives market alone.
Historically, short liquidations can contribute to price increases and increase market volatility. As whale activity has increased, data from IntoTheBlock shows that large holders accumulated almost 32,000 BTC on November 10 according to their data.
"The path to $80,000 BTC has been paved by steady ETF demand. This is not retail FOMO. It's quiet. People are buying ETFs and not selling. This is capital like HODL. The floor keeps rising," Gemini co-founder Cameron Winklevoss said.
The performance of US cryptocurrency ETFs last week was largely influenced by the presidential election results. After Trump declared victory on November 5, spot Bitcoin and Ethereum ETFs reversed their trends.
The current retail interest and increased appeal of Bitcoin as a major asset suggest the potential for further expansion of the cryptocurrency market as new investors enter the space.
