Retail Investors Are Back—What This Means for the Crypto Bull Run

While the market has dipped in the last few days, there is no doubt that we are still in the middle of a bullish rally.

However, something about this rally feels a bit different. Following Trump’s win, the mood and sentiment around the market has changed. Optimism is in the air, and the retail crowd senses the same.

After months of quiet activity, retail investors are making a strong comeback in the cryptocurrency market. The resurgence is marked by growing sentiment, increased transaction volumes, and renewed interest in dino coins.

Wait, Why Is This Important?

The retail crowd is essential for a sustainable bull market as they provide critical liquidity, enabling smoother price discovery and attracting institutional investors. Their participation amplifies trading activity, making markets more efficient and dynamic.

Retail investors also drive momentum in bull markets. Fueled by sentiment and the FOMO, they create strong demand that accelerates asset appreciation. This enthusiasm is often a key catalyst for broader market participation, drawing in additional investors and sustaining upward trends.

For those who continue to undermine retail’s impact, here is an ownership breakdown of Bitcoin. The three main user types as defined by IntoTheBlock are:

• Whales - Addresses holding over 1% of a crypto-asset’s circulating supply.

• Investors - Addresses holding between 0.1% and 1% of circulating supply.

• Retail -  Addresses with less than 0.1% of the circulating supply. 

As you can see, retail investors hold an overwhelming amount of BTC. As such, any sustainable bull run requires heavy retail participation. 

Having said that, let’s look at the details.

Retail Activity Indicators: A Surge in Metrics

Multiple indicators suggest that there is a renewed interest in cryptocurrencies. Let’s start with Google Trends.

A pretty straightforward indicator of renewed interest in the subject.

The volume of on-chain transactions under $10,000, a measure of retail activity, has risen by 13% over the past month, reflecting a renewed interest from small investors as Bitcoin's recent rally encourages them back into the market.

Bitcoin’s rally also triggered massive profit-taking, with $4 billion in realized profits over two consecutive days, according to Glassnode. 

Retail investors have sold around 75,000 BTC worth $7 billion, marking their largest distribution since Bitcoin's March peak above $73,000. 

However, this selling is met with strong accumulation by "sharks" — large holders with balances of 100 to 1,000 BTC — who have added 140,000 BTC during the same period. 

So once again, the narrative remains the same - the small holders sell off their coins to bag a profit (or minimize losses), and the big holders gobble up the coins.

New Address Creation & Optimism

Another helpful indicator is the number of addresses regularly entering the ecosystem. Data from IntoTheBlock shows that 442,000 new addresses were created recently, signaling fresh adoption and re-engagement by past participants.

The Sentix Strategic Bias metric has trended upwards, indicating that investors increasingly view Bitcoin as undervalued. This reflects a growing willingness to buy, reinforcing long-term bullish sentiment.

The Sentix Sentiment chart for Bitcoin reveals that market optimism is near its upper range. Historically, such heightened sentiment often precedes a period of consolidation or pullbacks as markets temporarily overheat.

Of course, optimism and greed go hand-in-hand.

The Fear and Greed Index continues to lean towards "Extreme Greed," reflecting elevated confidence in Bitcoin's price trajectory. While this is a bullish signal, it also warrants caution as periods of extreme sentiment often precede price corrections.

More Signs of Retail Revival

Platforms like Coinbase and Robinhood are once again topping app store charts, reflecting a growing influx of new retail traders. 

However, the most obvious indicator of growth might be the rise of 2017 dino coins.

Here are some of the 24-hour growth stats from a little over three days ago:

• XRP +22%

• ADA +33%

• XLM +52%

• VET +21%

• EOS +19%

Whoever knew that ADA, XLM, and EOS would be relevant again in 2024! But why is this happening? 

Is the reason that general folks who entered the market back in 2017 are once again entering the market post-Trump’s election and pumping the coins they read about back then? Maybe this is the reason why 2021-era coins like UNI and AVAX pumped as well.

Regardless, if retail is truly back, that’s a great sign for the market. It definitely seems like the market is entering a new phase of heightened participation and renewed momentum.

The crypto market moves fast, and sudden pumps and dumps can cost you if you’re not ready. That’s why we created "Coiners"—a group where experienced traders share real strategies and insights to help you make smarter decisions.

Learn when to enter, when to exit, and how to manage risk like a pro. Don’t sit on the sidelines—join Coiners now and level up your trading game.