No New Retail Investors Are Joining the Crypto Market, Says Top Trader – Here’s What He Thinks Could Change That

A closely followed trader is claiming that no new retail investors are joining the crypto market, but he believes one event could attract the newbies.

Pseudonymous trader The Flow Horse tells his 217,800 followers on the social media platform X that it will likely take Bitcoin (BTC) hitting six figures before new retail investors start entering the crypto market.

“No new retail investors are entering the market, despite the memecoin frenzy, which represents only a fraction of total market volumes and is more of a buzz on crypto Twitter than a significant trend. For new retail investors to come, we need much higher prices in large-cap, easily accessible pairs. Simply pushing on-chain assets up 10,000% does not attract retail investors, just as random pink sheet stocks doing the same doesn’t get people punting on Robinhood, or make the news. We need big and easily accessible names moving significantly. For that reason, I think Bitcoin probably needs to break $100,000 for people to take notice again.”

The trader suggests the current cycle is also having a harder time attracting new market entrants due to the scandal-plagued prior cycle, among other factors.

“I think absent people getting free money shoved in their pockets a la government [stimulus]:

1. Each cycle, unless generations apart, means less and less new people to grab, since at some point we reach a level of global penetration.

2. If someone isn’t here already, part of that reasoning is they haven’t felt strongly compelled or provoked to do so. Usually that occurs by seeing your friend/neighbor/coworker get stupid rich or asset prices that are front and center moving much higher.

Excitement needs to reach the mainstream, and it’s reasonable to assume we are still trying to distance ourselves from bad memories and stigma associated with the prior cycle.

This cycle seems more about ideally capturing the larger passive less price sensitive types, for a more accretive type of growth (with exchange-traded funds).”

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