Crypto market soars as retail returns and institutions lead the charge

The post-election landscape has brought a noticeable shift in the crypto market, with clear signs of retail investors returning. However, it’s important to highlight that institutional investors are playing a more significant role than ever, and they remain the primary drivers of price growth. While retail participation is crucial in spreading price exposure across a wider base, creating a more stable and sustainable market structure, it is the institutions that continue to propel the larger price movements.

On the BTC Markets platform, we’re seeing strong indicators of increased retail engagement. In November, we observed a substantial uptick in activity, with a number of dormant accounts logging back in, some of which had been inactive since as far back as 2019. Specifically, we saw a 60% month-over-month increase in new customer trading activity, and a 150% rise in previously lapsed customers returning to trade. This post-election rally appears to have re-engaged many participants who had stepped away from the market, and while our data is specific to BTC Markets, we believe this trend is reflective of broader market behaviour.

Despite the resurgence in retail participation, institutions continue to dominate. The introduction of ETFs and clearer regulatory frameworks in the U.S. has created an environment increasingly welcoming to institutional investors. The inflows into ETFs and the growing trend of companies adopting a MicroStrategy-style approach, holding Bitcoin on their balance sheets, are key examples of institutional influence. This type of corporate behaviour not only legitimises Bitcoin as an asset class but also triggers a flywheel effect that draws retail interest: headlines about institutional adoption drive legitimacy, which, in turn, boosts prices and sparks greater retail awareness and investment.

We’re also seeing other signs of retail momentum. For instance, Coinbase recently hit number eight in overall App Store rankings and claimed the top spot in the finance category on November 14. Additionally, searches for “Bitcoin” on Google have reached their highest levels since the 2020/2021 bull market, even surpassing previous peaks in March 2024. Solana’s Phantom Wallet also experienced a surge in app downloads, indicating growing interest from the retail sector.

In summary, the current rally is being driven by a combination of institutional strength and renewed retail enthusiasm, with both groups playing critical roles in shaping the market dynamics. As we continue to monitor these trends, it’s clear that the crypto market is experiencing a period of growth and evolution, underpinned by increased participation from both retail and institutional investors.

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