CryptoQuant CEO says retail investors already in Bitcoin market

CryptoQuant CEO Ki Young Ju has suggested that retail investors are already participating in the Bitcoin (CRYPTO:BTC) market, contrary to the common belief that their absence indicates a pending cycle peak.

According to Ju, retail investors are increasingly entering the market through exchange-traded funds (ETFs), which do not show up in on-chain metrics.

This shift in investment strategy means that traditional indicators of retail activity, such as on-chain data, may not accurately reflect the level of retail involvement in the market.

Ju noted that 80% of spot Bitcoin ETF flows come from retail investors, a trend observed since the launch of spot Bitcoin ETFs in early 2024.

These ETFs have attracted significant inflows, totaling around $35.88 billion, as retail investors seek more regulated financial products.

This development challenges the conventional view that retail enthusiasm is primarily gauged through on-chain metrics, which have shown minimal activity.

The Crypto Fear Greed Index currently reads a "Fear" score of 31, down from a "Neutral" score of 49, indicating underlying apprehension among market participants.

However, this sentiment may not fully capture the true level of retail interest due to the growing popularity of ETFs.

Google search trends for "crypto" have also declined significantly since January, suggesting a potential reassessment of strategies among casual investors.

As Ju pointed out, the current state of liquidity appears constrained, hinting at cautious investor behavior.

He has warned that Bitcoin's bull cycle may be over, predicting a potential bear market or sideways trend for the next six to twelve months.  

At the time of reporting, the Bitcoin (BTC) price was $84,384.27.