Introduction
The price of Bitcoin has been on a tear in recent months, reaching its highest level in over a year. This has been driven by a number of factors, including the approval of Bitcoin futures ETFs in the United States and the increasing adoption of Bitcoin by institutions.
However, according to Michael Shaulov, the CEO and co-founder of institutional custody platform Fireblocks, the next major price surge for Bitcoin will come from retail investors, not institutions.
Retail Investors Drive Previous Price Surges
Shaulov points to the fact that retail investors have been the driving force behind previous price surges for Bitcoin. For example, in 2020, when the price of Bitcoin rose from $3,800 to over $60,000, it was retail investors who were buying the most Bitcoin.
“Even though there were massive inflows, those institutions were sophisticated enough to acquire [BTC] slowly and use algorithms that won’t drive up the market,” Shaulov said. “Instead, 50% increases [came] from retail […] because they’re participating in a way that’s less sophisticated and moves the price dramatically.”
Institutional Investors Are Still Cautious
While institutional investors are starting to buy Bitcoin, they are still relatively cautious. This is because they are not yet fully convinced that Bitcoin is a safe and reliable investment.
“The narrative over Bitcoin is still ‘playing out’ for these institutions,” Shaulov said. “They’re still trying to understand what it is, how it works, and what the risks are.”
Retail Investors Are More Reckless
Retail investors, on the other hand, are not as concerned about the risks of Bitcoin. They are more willing to take risks in the hope of making a big profit.
“Retail investors are more reckless,” Shaulov said. “They’re more likely to buy Bitcoin because they think it’s going to the moon.”
Conclusion
Shaulov believes that the next major price surge for Bitcoin will come from retail investors. He believes that retail investors are more likely to drive the price of Bitcoin higher than institutions.
“I think the next big price surge will come from retail,” Shaulov said. “It’s going to be driven by retail FOMO [fear of missing out].”
Additional Information
In addition to the factors mentioned above, there are a number of other factors that could contribute to a retail-driven price surge for Bitcoin. These include:
The continued adoption of Bitcoin by mainstream businesses and organizations.
The increasing awareness of Bitcoin among the general public.
The development of new Bitcoin products and services that make it easier for people to buy, sell, and use Bitcoin.
It is important to note that there is no guarantee that a retail-driven price surge will happen for Bitcoin. However, the factors mentioned above suggest that it is a possibility.
