The article discusses the changing behavior and evolution of retail investors in the Bitcoin market. Retail investors, categorized as "shrimps" (holding less than one bitcoin) and "crabs" (holding one to ten bitcoin), played a significant role in the 2017 bull run and the subsequent crash. However, in the current market cycle, institutional investors have been leading the narrative, while retail investors have been less prominent.

The article highlights that retail investors are now more strategic, buying the dips and selling the peaks in Bitcoin. They are also increasing their holdings through a dollar-cost averaging approach, similar to ETF buyers or passive investors. Retail investors currently hold around 15% of the circulating bitcoin supply, equivalent to roughly 3 million bitcoin.

Another observation is that liquidations of retail investors in the futures market have significantly decreased compared to 2021. This shift is attributed to the use of cash as collateral for margin trading, rather than volatile cryptocurrencies like bitcoin.

Overall, retail investors in the Bitcoin market are evolving, becoming more sophisticated in their investment strategies. The next step in the market's evolution is the introduction of an options market traded on ETFs, which could attract further participation from sophisticated retail investors.



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