The crypto market has been in a rally for a while, but it seems it is just getting set to enter a new phase in the bullish journey. So far, it is mostly whales that have been involved, which suggests the initial stage of the rally, but that is about to change.
According to data from CryptoQuant on 7 October, retail investors are waking up as seen by the large number of them appearing on Binance, the largest crypto trading platform by trading volume.
What does retail activity mean?
Whales are mostly those large investors who help to start a crypto rally. However, the rally is not complete until retail investors come in.
Their presence usually indicates that the rally has reached a noticeable point where it becomes obvious that crypto is in a bull market.
At this point, most people come in just to take their own little scoop of the profit from the already raging crypto market, a phenomenon called fear of missing out (FOMO).
The coming in of retail traders then takes the rally to a new height, and could also be an indication that the rally is about to end.
A large number of retail investors on Binance is significant because the platform alone accounts for more than 50% of the market volume.
Time to take position
Retail traders swarming Binance may not mean much to the average Joe, but to experienced investors, it means it is time to take position and prepare for a bumpy ride.
While it has been quiet for a while, the quietness may start to turn to a lot of activity in the coming days and weeks as more people are warming up to the rally.
There are lots of bullish predictions concerning not just Bitcoin but also top altcoins and the time for those predictions to manifest might be around the corner.
What do you think?
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