Analysis: The current rise of Bitcoin is led by institutions, while retail investors remain cautious
ChainCatcher news, Coindesk analyst Aoyon Ashraf stated that Bitcoin reached an all-time high this week, primarily driven by institutions, while retail investors were almost "absent" from this rally. A quick search using "Bitcoin" as a keyword on Google Trends reveals that the search frenzy seen during the 2021 bull market is now completely absent.
Although there was a brief surge of retail enthusiasm during the U.S. presidential election, when a rapid Meme coin craze briefly ignited market sentiment, that excitement has long faded. Despite Bitcoin breaking through $111,000 to set a new all-time high this week, Meme coin prices have quickly fallen, and retail enthusiasm has cooled.
Even though Bitcoin has reached an all-time high, traders remain cautious, as evidenced by lower funding rates and increased short positions. The current market sentiment shows a trend towards more sustainable trading behavior, which may pave the way for long-term gains.