Bitcoin's rally is just beginning – influx of retail investors

Bitcoin will continue to rise due to demand from retail investors. According to analytics company Skew,Despite Bitcoin's crazy pre-New Year rally, retail investor interest in BTC is still growing. What awaits Bitcoin in the near future, will retail investors return?

Lately there has been an opinion that Bitcoinrises in price against the backdrop of institutional demand. After Grayscale and Paypal began buying cryptocurrency faster than it was being mined, the price seems to be rising all the time.

When BTC hit $25,000 on December 25, the bulls didn't stop. Interestingly, Bitcoin broke through the $28,000 mark on December 27, one of the quietest working days of the year.

Due to the New Year and Christmas holidays, many large banks, businesses and other financial institutions are closed. Then who are these whales pushing the price up?

Not without retail investors

It turns out that, despite the highInstitutional interest, which is likely the driving force behind the growth, cannot be attributed to the pre-holiday race alone. Indeed, retail traders appear to be buying Bitcoin ahead of the New Year.

But retail interest has yet to hit 2017 levels, when BTC first tested the $ 20,000 mark amid a massive bull rally, according to research by analytics platform Skew.

In support of this, Skew provided a diagramGoogle Trends for the word bitcoin. Basically, it shows how many times users entered the word "bitcoin" into the search box, as well as links to it in Google.

2017 vs 2020 — retail interest hasn't surged back pic.twitter.com/fnPHSYEbwr

- skew (@skewdotcom) December 27, 2020

BTC has not exhausted its potential yet

Despite the fact that Bitcoin has reached record highs and its market capitalization has approached unprecedented levels, it still has room for growth.

After all, some believe that bullishThe Bitcoin rally is not as widely reported in the media as it was in 2017-2018. In addition, it is possible that ordinary guys have not yet entered the market, pushed by intuition, hype and the syndrome of loss of profits.

Bonuses can be another growth factor.which bankers and other highly paid professionals receive at the end of the year. Some professional traders buy BTC knowing how big the institutional interest is within the system.

It should also be noted that bitcoin holderswithdraw them from crypto exchanges and move coins to offline wallets, and this increases their shortage in the market. It seems that most of the cryptocurrency is being transferred to cold storage, which leads to higher prices.

Ordinary people and big shots from the financial worldable to pump up the market even more due to the surge of interest in the retail segment. Who knows how far they will push prices when banks and financial companies resume operations in January.

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