Where are retail investors as Bitcoin surpasses $124,000?

The crypto market capitalization in October reached a new high of over $4.2 trillion, while Bitcoin hit a record price of $126,000. However, this milestone has been achieved without significant participation from retail investors.

So, where are they while Bitcoin continues to climb? Data and analysis from experts provide deeper insights and possible explanations for the current behavior of retail investors.

Gold and Silver attract more retail interest than Bitcoin

According to Google Trends, search interest in gold has reached its highest level since 2009. Meanwhile, keywords related to Bitcoin and crypto have shown little to no breakout.

This trend suggests that retail capital is leaning toward precious metals rather than digital assets.

Crypto And Gold Search Trends. Source: Google Trends.

In October, gold set a new all-time high above $3,950, while silver exceeded $48, just about 5% away from breaking its 2011 record.

Therefore, the question “Where are retail investors when Bitcoin hits a new ATH?” might be simple — they are in gold and silver.

This indicates a shift toward safe-haven assets, as small investors seek protection rather than taking risks in crypto after suffering losses during previous bear markets.

Analysts remain bullish despite retail apathy

Despite the lack of retail enthusiasm, analyst Panama argues that Bitcoin is rallying "in stealth mode.” He sees this as a strong bullish signal, suggesting that institutions and nations quietly accumulate Bitcoin while gold benefits from inflation and geopolitical concerns.

“BTC's rally is in stealth mode right now, no retail FOMO yet. Super bullish signal IMO. This screams long-term win for the ‘digital gold’ thesis. History shows retail jumps in late, after price leads the way.” — Panama commented.

Other analysts agree. The temporary absence of retail investors could signal a more sustainable growth phase.

For instance, Shanaka Anslem Perera predicts that when retail traders return, they will buy from large institutions like BlackRock, not from miners — because by then, most Bitcoin will already be held by funds, ETFs, and institutional entities.

“Retail got wrecked in 2022 and walked away. Whales didn’t. They built infrastructure, launched ETFs, and turned Bitcoin into collateral for the new financial order. When the crowd comes back, they’ll be buying from BlackRock, not from miners.” — Shanaka Anslem Perera predicted.

Positive signs of retail activity emerging in October

Short-term data reveal some encouraging signs. Dave Weisberger, former head of a crypto exchange, noted that Bitcoin’s weekend volatility has returned. Over the past two weeks, Bitcoin prices have surged during weekends, when institutional trading activity is minimal.

Individual and speculative traders typically dominate weekends, while institutional players influence weekdays. This weekend activity may signal a potential return of retail FOMO, possibly pushing prices even higher.

Another report from Darkfost on X highlights changing retail behavior on Binance. After Bitcoin peaked, BTC inflows from wallets holding less than 1 BTC rose significantly.

Binance Retail BTC Inflows. Source: CryptoQuant.

Although the total transfer volume remains small, this shift reflects a short-term behavioral change.

“Retail investors are becoming active again on Binance.” — Darkfost said.

Bitcoin’s latest rally appears to be institutionally driven, while retail investors remain on the sidelines. But if history repeats itself, their eventual return could ignite a new phase of explosive market growth that surpasses anything seen before.