A recent price surge drove Bitcoin to multi-month highs - all thanks to a strong retail investor comeback.
At least that's what a JPMorgan research report indicates.
With Bitcoin up 30%, retail investors are likely looking forward to major crypto events on the horizon, including the Bitcoin halving, Ethereum's next major upgrade and the potential regulatory approval of spot Ether exchange traded funds.
There's also increased activity on retail-focused platforms like Block
On-chain data also shows larger Bitcoin flows from smaller wallets - a proxy for retail participation.
However, this analysis stands in stark contrast to observations of surprisingly low public interest levels, as indicated by Google search trends.
According to Trevor Filter, co-founder of digital payments platform Flexa, retail investors tend to have more opportunities when the use cases become more clear.
Crypto critics often point out the lack of utility and viability when it comes to digital assets.
"Has anybody... ever bought something using Bitcoin as a currency? A sandwich? A computer? A book? Anything?" Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, recently asked.
For Filter, the "current market cycle is just heating up" and "the theme of 2024" is still uncertain.
"Could it be payments or Ordinals or brand-new use cases we haven't seen yet? Retail participants don't have much to latch onto at the moment, and as a result it's the larger funds and traders who are able to take advantage of the current market movements," he says.
The contrast between the JPMorgan report and Google search trend highlights a potential disconnect between the market's performance and the public's engagement or awareness of cryptocurrency trends.
It suggests that experienced investors or crypto enthusiasts are participating, while retail investors are still on the sidelines.
Retail investors are certainly in the market, but not like they were in 2021, which was the top of the last cycle, says Markus Levin, co-founder of XYO Network.
After any down cycle like the one we just went through, retail investors then tend to be laggards when it comes to getting early exposure for the next upwards cycle.
"This is normal and I expect retail to come back in bigger numbers," Levin adds.
Despite potential bullish catalysts, JPMorgan sees only a 50% chance for the approval of spot Ether ETFs, indicating a selective optimism among investors.
Price Action: At the time of writing, Bitcoin was trading above the $51,000 mark, according to Benzinga Pro.
