Bitcoin reaches $56,000 on Tuesday, ushering the cryptocurrency market into a new era of price growth. The cryptocurrency market is brimming with new investment opportunities and the surge in BTC is pushing top altcoins to new weekly highs.
BTC is now just $13,000 away from reaching its all-time high of $69,014 achieved in November 2021. The leading cryptocurrency dropped to $16,500 in January 2023 but has since steadily risen to $56,000 in February 2024.
The price action began after the SEC approved a Bitcoin ETF in mid-January, driving its price to these levels. While institutional investors are embracing Bitcoin, retail traders seem to be lacking in activity. Financial institutions are gaining a larger share of the BTC profit pie while retail traders are following the game.
Retail traders not joining Bitcoin’s rally
Data from Google searches indicate that retail investors did not fully capitalize on Bitcoin’s rise to $56,000. One reason could be that retail traders invested in alternative coins (altcoins) and their funds were stuck due to the market downturn. Another reason could be that retail investors feared BTC has reached its peak and may decline.
However, even if retail investors overcome their fear and join in on BTC, it can still push its price to new ATH. The combination of institutions and retail investors can create miracles for Bitcoin’s price. Whether retail traders will step up and take the lead positions remains to be seen.
