According to CryptoQuant CEO Ki Young Ju, retail investors have largely exited, while institutional "whales" are aggressively accumulating Bitcoin.
The retail retreat
On-chain metrics indicate that retail participation is currently at a neutral level compared to historical averages. This shows that the broader public has not yet entered a phase of high "FOMO" or speculative hype.
Much of this retail capital has reportedly rotated out of crypto and back into traditional assets like stocks, gold, and silver. The latter has been enjoying a truly remarkable rally, outshining all major cryptocurrencies and attracting speculative fervor.
"Money just rotated to stocks and shiny rocks. I don't think we'll see a -50%+ crash from ATH like past bear markets. Just boring sideways for the next few months," Ju said in a recent social media post.
Whale accumulation
In the meantime, large-scale entities, including institutions, corporate treasuries, and whales, are currently in the process of absorbing the supply.
Institutional investors and "whales" are currently the primary drivers of market activity based on larger order sizes.
Spot Bitcoin ETFs showed renewed momentum in the first week of January, recording more than $900 million worth of inflows.
Greed returns
In the meantime, the Bitcoin market has reached a significant psychological turning point.
After a three-month period dominated by fear following the $19 billion liquidation event in October 2024, the Bitcoin Fear and Greed Index has now surged to 61.
However, it remains to be seen whether or not this rally will actually last.
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