TechFlow news, Matrixport's latest report indicates that despite Bitcoin rebounding over 300% since the end of 2022, retail participation remains weak, with the market increasingly dominated by institutional investors and volatility dropping to 41%, below the five-year average of 60%. As retail involvement declines, Bitcoin is becoming more institutionally driven, leading to reduced volatility. The liquidation of South Korean retail positions when Bitcoin fell below $60,000 further underscores this significant shift from retail to institutional dominance. Meanwhile, ETFs continue to see steady inflows.
The report also shows that most of the decline over the past 30 days occurred during Asian trading hours, accounting for -13% of the total -15% drop, primarily driven by retail trading activity in South Korea. Google Trends data reveals that Bitcoin search interest has declined from 100% in 2017 to 41% in 2024, indicating limited retail enthusiasm but improved awareness. Trading volume on South Korean exchanges is closely correlated with Bitcoin’s annualized funding rate, and South Korean retail traders play a significant role in the altcoin market, creating substantial leveraged opportunities.
