While Bitcoin approaches its all-time high of $73,798, retail investors remain largely on the sidelines. Despite a recent 14% surge, there are signs that the fear of missing out (FOMO) has not yet taken hold among individual investors, Bloomberg reported.
Vetle Lunde, head of research at K33 Research, notes that while institutional interest is revitalizing, retail activity is tepid. The Kimchi premium, which typically sees Bitcoin trading at a higher price in South Korea, has turned negative, indicating reduced retail engagement.
Bitcoin’s Global Price Difference
The Kimchi premium, which is the price difference between Bitcoin on South Korean exchanges and international markets, is a revealing sign of this poor participation. This has recently gone negative, indicating that Korean investors are not very interested in it as a retail.
Lunde notes that the Korean market often sees large premiums because of consistent retail demand and strict capital controls, making such an inversion unusual.
Ahead of November’s presidential election, there has been a recent surge in the price of Bitcoin that corresponds with optimism about the regulatory environment in the United States.
The Democratic nominee for vice president, Kamala Harris, has promised to back legislation establishing a framework for the cryptocurrency sector, while her rival, Donald Trump, is well-known for being pro-crypto. This political environment intensifies the bullishness of the market.
The Future Look
In the current environment, investors have poured approximately $1.4 billion into U.S. spot-bitcoin exchange-traded funds this month, and open interest in CME Group’s Bitcoin futures market has reached record levels, reflecting growing institutional engagement.
As Bitcoin was trading at about $67,790 as of Friday morning in Singapore, marking a 1.3% increase, the cautious stance of retail investors may soon change as market conditions evolve, potentially leading to increased participation.