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The cryptocurrency market witnessed a remarkable surge, with its total market capitalization eclipsing $1.55 trillion on December 5. 
This surge was largely driven by significant weekly gains in major cryptocurrencies, including a 14.5% increase for <a href="https://crypto.ro/en/bitcoin/">Bitcoin</a> (BTC), now priced at $44,232, and an 11% rise for Ether (ETH), currently valued at $2,285. 
<figure id="attachment_25511" aria-describedby="caption-attachment-25511" style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" class="size-full wp-image-25511" src="https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25.png" alt="Coins performance over the last 7 days" width="1920" height="931" srcset="https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25.png 1200w, https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25-300x145.png 300w, https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25-1024x497.png 1024w, https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25-768x372.png 768w, https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25-750x364.png 750w, https://crypto.ro/en/wp-content/uploads/2023/12/Coin360-25-1140x553.png 1140w" sizes="(max-width: 1920px) 100vw, 1920px" title="As Bitcoin soars to $44,000, did retail investors miss the boat? 21">
 <figcaption id="caption-attachment-25511" class="wp-caption-text">
 Coins performance over the last 7 days
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</figure> 
This milestone marks the highest level for the crypto market in 19 months, with Bitcoin notably becoming the world’s ninth-largest tradable asset, surpassing Meta Platforms Inc.’s $814 billion capitalization. 
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 <img decoding="async" class="wp-image-25512 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14.png" alt="Top 10 assets by market cap" width="1391" height="848" srcset="https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14.png 1200w, https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14-300x183.png 300w, https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14-1024x624.png 1024w, https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14-768x468.png 768w, https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14-750x457.png 750w, https://crypto.ro/en/wp-content/uploads/2023/12/image_2023-12-06_12-54-14-1140x695.png 1140w" sizes="(max-width: 1391px) 100vw, 1391px" title="As Bitcoin soars to $44,000, did retail investors miss the boat? 22">
 <figcaption id="caption-attachment-25512" class="wp-caption-text">
 Top 10 assets by market cap
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</figure> 
This development reflects the growing influence and acceptance of cryptocurrencies in the global financial landscape. 
Despite this bullish trend, analysts have noted a relative stagnation in retail demand, a situation that can be attributed to several factors. 
The inflationary environment and the diminishing interest in credit amid high interest rates – currently above 5.25% – have likely contributed to this trend. 
Rajat Soni, a financial analyst, suggests that while his recent post may have dramatized the situation, the core message about cautious retail sentiment holds true. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
 Retail investors aren't paying attention to <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#bitcoin</a>. 
 They are more worried about whether or not they will be able to pay rent or put food on the table. 
 They will likely start paying attention near the next top (IMO sometime in 2025) and they will FOMO into a position before… 
 — Rajat Soni, CFA (@rajatsonifnance) <a href="https://twitter.com/rajatsonifnance/status/1730961151234576680?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">December 2, 2023</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
In contrast, numerous U.S. economic indicators, such as wages, salaries, and household net worth, have reached record highs. 
<a href="https://twitter.com/rajatsonifnance/status/1730961151234576680?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1730961151234576680%7Ctwgr%5E71e4130805b33aaf744e5930ffd7dcc72134b822%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fbitcoin-price-hit-2023-high-why-are-retail-traders-on-sidelines" rel="nofollow noopener" target="_blank">Ed Yardeni</a>, a noted analyst, opines that the much-anticipated “Santa Claus rally” in stock markets might have occurred earlier this year, with the S&amp;P 500 gaining 8.9% in November. 
This rise was attributed to diminishing inflationary pressures and robust employment data, indicating a complex economic environment. 
Despite the positive trends, investor caution remains high. Approximately $6 trillion in “dry powder” is still parked in money market funds, indicating a wait-and-see approach among investors. 
<h2 id="did-retail-traders-miss-the-recent-gains-in-bitcoin-and-ether">Did retail traders miss the recent gains in Bitcoin and Ether?</h2> 
With no reliable indicator to track retail participation in cryptocurrencies, comprehensive data sets are necessary to make informed conclusions. The premium of Tether (USDT) in China, a measure of retail demand in the crypto market, serves as a valuable gauge. 
As of December 5, the USDT premium relative to the yuan stood at 1%, a modest improvement but still within a neutral range. 
Google Trends data for terms like “buy Bitcoin” and “buy crypto” have shown stable patterns over the past three weeks, with the current 90-day index standing at approximately 50%, significantly lower than its peak in 2021. This suggests a lukewarm retail interest, despite the recent crypto surge. 
<img decoding="async" src="https://s3.cointelegraph.com/uploads/2023-12/65886e39-2b1b-46ac-ae66-218e65aadc2a.png" alt="65886e39 2b1b 46ac ae66 218e65aadc2a" title="As Bitcoin soars to $44,000, did retail investors miss the boat? 23"> 
Furthermore, an examination of the derivatives market, particularly perpetual futures, offers insights into retail trading behavior. 
The weekly funding rate for most coins, an indicator of demand for leverage, has fluctuated between 0.2% and 0.4% per week. This indicates a slightly higher demand among buyers but remains far below levels seen in bullish periods. 
<img decoding="async" src="https://s3.cointelegraph.com/uploads/2023-12/69bf923b-96f4-4b30-a657-778e7bcbaf97.png" alt="69bf923b 96f4 4b30 a657 778e7bcbaf97" title="As Bitcoin soars to $44,000, did retail investors miss the boat? 24"> 
In conclusion, while the cryptocurrency market has demonstrated strong growth, the participation of retail investors remains an area of uncertainty. This dynamic market continues to evolve, with factors like regulatory scrutiny and shifting trader preferences influencing its trajectory.

As Bitcoin soars to $44,000, did retail investors miss the boat?

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