Despite the gradual recovery of crypto prices, recent data has shown a change in sentiment among retail investors, especially those in the Korean market, who seem to be more cautious.
CryptoQuant analyst Mac D recently published information on the CryptoQuant QuickTake site, highlighting the implications of this change.
Retail Interest Is Declining, What About Smart Money?
According to Mac D, the decrease in the participation of retail investors is combined with the negative Korean premium index – a sign that local investors are losing interest in the crypto space.
The main reason for this decline, as Mac wrote, is linked to the sideways movement of Bitcoin’s price over the past six months, following its peak in March.
This volatility and broader macroeconomic uncertainty have led to investment fatigue among Korean investors, pushing many to exit the market or adopt a wait-and-see approach.
However, while bearish sentiment in markets such as Korea is showing signs of weariness, institutional investors in the US are beginning to see current conditions as an opportunity.
Mac D points out that the Coinbase Premium index, which measures US investor sentiment, has recently changed.
According to the analyst, this indicator suggests that interest in crypto is growing in areas where market-friendly policies, such as interest rate cuts in the US and economic stimulus measures in China, are being introduced.
Such policies have created a favorable environment for what is often called “smart money”—institutional investors and sophisticated traders—who have become more confident in long-term investments.
Strategic Positioning Amid Retail Investor Retreat
Additionally, the strong inflow of exchange-traded funds (ETFs), as highlighted by Mac, also shows that US-based investors are building positions in the crypto market.
ETFs, especially spot-based, provide an “efficient” way for investors to gain exposure to crypto assets without directly holding them.
This entry could reflect renewed confidence and a shift to a long-term strategic stance, even amid broader uncertainty in global markets.
In fact, this behavior is in stark contrast to the pullbacks of retail investors and may indicate a market reversal. Mac concluded, noting:
To sum up, retail investors are becoming less interested in the crypto market, while macroeconomic uncertainty is decreasing and US smart money is gaining confidence. The movement of retail investors and the decline in premiums can be used as a good opportunity to buy coins.
Meanwhile, regardless of the withdrawal of sellers in Korea, the crypto market as a whole seems poised for a bull run. So far, Bitcoin and other top crypto assets have returned to major levels and even broken short-term resistance.
The featured image was created with DALL-E, a Chart from TradingView