Retail investors have become popular in the cryptocurrency and stock markets, and they are expected to be around for a long time.
Lule Demmissie, the new CEO of the United States arm of eToro, stated that retail investors are here to stay.
Retail investors are playing key roles in the market performance of cryptocurrencies and stocks. Over the past year, retail traders have pushed the prices of stocks such as AMC and GameStop to new highs.
Demmissie pointed out in a recent interview with The Block that she doesn’t see the retail's newfound presence in the market subsiding anytime soon. She stated that;
"What you're seeing is the sustainability of that user base staying engaged, waiting for dips, getting in the markets when necessary. Ultimately they're sticking around, and they're engaging every time there's volatility."
Demmissie added that the collective mind of the retail crowd now has more insights than institutional investors previously thought. The eToro US CEO added that;
"There is a self-made mechanism, a self-clearing mechanism that is happening in social, where there is a balance that takes place within the crowd, where the crowd gets smarter and smarter, and the synthesis of it afterward becomes something that is really interesting to listen to."
Retail investors have majorly been behind the success of the cryptocurrency market over the past decade. Institutional investors didn’t start coming into the market in huge numbers until two years ago when Bitcoin and others started to go mainstream.
Despite the entry of institutional investors in the cryptocurrency market, retail investors still play a crucial role in determining the performances of most cryptocurrencies.
The broader cryptocurrency market has slightly retreated following the rally it embarked on earlier this week. Bitcoin rallied towards the $38k level yesterday but is now trading just around $36k per coin.