Institutional participation in the cryptocurrency market is increasing rapidly, while whales have effectively disappeared in this cycle, an assessment said.

On April 13, Cointelegraph reported that Exodus CEO JP Richardson said of the current market mood, "Institutions have jumped on the bull market, but individuals do not feel it at all."

Richardson said this trend differs from the past. He said, "This could be the first cycle in history where institutions are in a bull market and individuals do not even know it." In 2018 and 2022, institutions also exited the market along with individuals, but this time they instead accelerated participation, he said.

He cited the expansion of institutional infrastructure and channels for capital inflows. The stablecoin market's market capitalisation hit a record high this year, and Morgan Stanley launched a spot bitcoin exchange-traded fund. Charles Schwab began running a waitlist for spot bitcoin ETF trading, and Franklin Templeton announced its cryptocurrency business division. Fannie Mae also accepted mortgages backed by bitcoin.

These changes show that leadership in the cryptocurrency market is shifting from retail-led sharp rallies and drops to a phase of institution-led accumulated buying and expanded liquidity. As a result, the market may be more heavily influenced by structural funding flows than by emotional buying and selling.

Signs of retail absence also continued in the market. MN Fund founder and cryptocurrency YouTuber Michael van de Poppe (미카엘 반 데 포페) said, "It is very clear that retail is not interested in crypto." He cited rising living costs and inflation burdens and said, "Most people are in a situation where it is hard to even cover monthly living expenses."

On-chain indicators also pointed to a similar trend. CryptoQuant analyst Darkfost said earlier this month that whale activity fell to its lowest level in 9 years. He said the scale of inflows of small accounts holding less than 1 BTC on Binance hit a record low. "Retail investors are not in the market," he said, mentioning the possibility that some retail funds have shifted to stocks and commodities that recently delivered clear performance.

Still, short-term market sentiment is continuing to be heavily shaken by macro variables. CoinEx chief analyst Jeff Ko said short-term sentiment is largely driven by oil prices, the dollar and inflation expectations. While more optimistic in the medium term, he said, "Looking at basic supply and demand, I do not think oil prices will stay at high levels for long."

The next point to watch is how much expanding institutional money can offset weak retail demand. While stablecoins, ETFs and trading infrastructure are expanding, the short-term price trend may continue for some time to react sensitively to changes in the macro environment.

This might be the first cycle in crypto history where institutions are in a bull market and retail doesn't even know it. Stablecoins at $319B. Morgan Stanley launched a Bitcoin ETF. Schwab opened a waitlist for spot bitcoin trading. Franklin Templeton announced a crypto…