Retail Investors Remain Key to Bitcoin's Price Movements

Bitcoin's price is often influenced by various factors, including retail investor sentiment. According to Swan Bitcoin CEO Cory Klippsten, retail investors still play a crucial role in the movements of Bitcoin's price. Klippsten pointed out that the market often mistakenly believes that institutions like BlackRock and Fidelity Investments 'own' Bitcoin.

In reality, most ETF holders are individual investors who hold Bitcoin as a vehicle. This creates real demand in the market, as ETF issuers still need to buy and custody actual Bitcoin in the spot market. The uniqueness of Bitcoin lies in its on-chain real asset nature, which differentiates it from other financial products.

The recent decline in Bitcoin's price has led to a cautious investor sentiment. With the crypto market Fear & Greed Index standing at 23, investors are currently in an 'extreme fear' zone. This is reflected in the outflow of US spot ETFs, which has reached $2.9 billion since May 15.