Matrixport: Even if the Federal Reserve chooses to cut interest rates, it will be difficult for the crypto market to see a sustainable rise as retail participation weakens.

DeepFlowTech

According to Deep Tide TechFlow, on December 9, Matrixport released a chart of the day stating, "Currently, retail participation in the crypto market remains low. Taking South Korea, a historically retail-driven market, as an example, today’s trading volume is significantly lower compared to the peaks of December 2023 and 2024: back then, daily trading volume could reach several billion US dollars, whereas now it barely hovers around $1 billion, reflecting that short-term retail funds have yet to flow back in significantly.

In such a market environment, some newly launched or expanding trading platforms continue to find it difficult to achieve sustained growth in trading volume. Some previously highly anticipated IPO plans have also noticeably slowed down. Without a broader return of retail investors, even if the Federal Reserve chooses to cut interest rates in the future, monetary policy easing alone is unlikely to trigger a truly sustainable rally.

To put it bluntly, without trading volume, market sentiment is hard to build up; without sentiment, trading volume is also difficult to expand."

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