Retail investors are watching or completely leaving the market despite Bitcoin (BTC) recording a new all-time high and maintaining over $111,000 after a 7-week adjustment.
Institutional fund inflows and whale accumulation have driven prices up, but many small traders have been liquidated during the rally.
Market Rise Amid Individual Investor Skepticism
According to Coinglass data, over 114,500 traders experienced liquidations in the past 24 hours, with losses reaching $515.34 million.
The largest single liquidation order occurred on HTX, with $51.56 million in BTC-USDT positions being eliminated.
These forced liquidations primarily occur from excessive leverage Longing and short positions, demonstrating that the market remains highly volatile even during price surges.
Meanwhile, Santiment highlighted a deeper trend indicating retail investor surrender. The on-chain analysis company notes that small BTC wallets are selling to whales. Historically, such behavioral patterns have preceded sharp increases.
"Bitcoin prices consistently showed more strength when small wallet numbers decreased and whales accumulated." – On-chain analyst Brian from Santiment stated.
This data aligns with broader market sentiment. Many retail investors have left the market over the past few weeks due to boredom, distrust, or fear of false rallies.
Ironically, this surrender might indicate the moment smart money enters the market. The market now appears to be rising in what analysts call a "disbelief rally" - a stage where prices continue to rise despite widespread skepticism.
"...many retail investors have left the market in recent days due to boredom or distrust. History has shown this to be a key signal of potential breakout. The cryptocurrency market typically moves in the opposite direction of crowd expectations." – Brian added.
Veteran trader and analyst Michael van de Poppe reflected this sentiment in a recent post, emphasizing that most traders tend to show weakness when a bull market begins.
"At the start of a bull market, 99% of people will still maintain a bearish stance. Next month, you'll continue hearing that the altcoin rise is fake. This is part of the cycle." – The analyst mentioned.
Despite Bitcoin's new ATH and strong ETF inflows, the mood on crypto forums and social media remains cautious.
Similarly, the Crypto Fear and Greed Index is tilting towards greed again but has not yet reached an enthusiastic level.
Analysts suggest that once FOMO begins, especially as altcoins start to catch up with Bitcoin's performance, holders will increase again.
Currently, the gap between rising prices and retail investor skepticism may be preparing the next bull market stage. If history is a guide, retail investor distrust could be the ultimate fuel for Bitcoin's continued rise.
