Bitcoin Surges 100% to $120,000, Institutional Investors Drive Bull Run

Bitcoin has been hitting all-time highs, with the world’s biggest cryptocurrency surpassing $120,000 for the first time. However, despite the euphoria, there is a noticeable absence of retail investors in this current bull run. Analysts and influencers are concerned that Bitcoin might be a victim of its own success, as the price surge is predominantly driven by institutional investors.

According to Bitwise’s European head of research, the latest price surge is mostly driven by institutions, with companies like Strategy and Metaplanet acquiring as many coins as they can afford. This is illustrated by a chart tracking BTC’s price since 2015 and its correlation with Google search traffic for “Bitcoin.” Both have historically moved in tandem, rising during bull runs and falling during bearish contractions. However, there are two key points of divergence.

In late 2017 and early 2018, when BTC hit $20,000 for the first time, Google search traffic spiked. In contrast, the current surge in Bitcoin’s value is not accompanied by a similar increase in search interest. This divergence suggests that everyday investors are not as engaged with Bitcoin as they once were. One possible explanation is the rise of artificial intelligence, which allows users to get customized answers quickly, potentially diverting traffic from Google to platforms like ChatGPT.

Another factor could be the caution among consumers who remember the risks of buying around all-time highs. Those who bought BTC at $20,000 in 2017 or $69,000 in November 2021 experienced significant losses. This memory might be making retail investors hesitant to enter the market at current prices. Additionally, there is a theory that many retail investors are simply unaware of Bitcoin’s recent surge, as there is little discussion about the crypto markets in mainstream circles.

Some analysts suggest that the high price of Bitcoin might be deterring retail investors. To address this, there have been calls for an education drive to inform the public that Bitcoin can be purchased in smaller fractions, known as satoshis. One satoshi is equivalent to one-hundred-millionth of a coin, making it more affordable for smaller investors. A Bitcoin Improvement Proposal was put forward in April, suggesting that the base unit of BTC be redefined to eliminate “unit bias” and make the cryptocurrency seem more accessible.

Despite the absence of retail investors, Bitcoin enthusiasts are already looking ahead to the next big milestone: $1 million. While this target is still some way off and may take several bull cycles to achieve, some analysts see it as evidence that the market is still in its early stages, with plenty of opportunities for retail investors to enter.