Matrixport: The crypto market is unlikely to see sustainable gains as retail participation weakens

Jinse Finance reported that Matrixport released today’s chart stating, “Currently, retail participation in the crypto market remains relatively low. Taking the historically retail-dominated Korean market as an example, today’s trading volume is significantly lower compared to the peaks in 2023 and December 2024: back then, daily trading volumes could reach several billions of dollars, whereas now it barely hovers around 1 billion dollars, reflecting that retail funds, which mainly engage in short-term trading, have yet to return in a significant way. In such a market environment, some newly launched or expanding trading platforms continue to struggle to see sustained growth in trading volume. Some previously high-profile listing plans have also noticeably slowed their pace. In the absence of a broader return of retail investors, even if the Federal Reserve chooses to cut interest rates in the future, monetary policy easing alone is unlikely to drive a truly sustainable rally. To put it more bluntly, without trading volume, market sentiment is hard to accumulate; without sentiment, trading volume is also difficult to expand.”