Analysis: Retail participation in the crypto market remains low, and even a Fed rate cut is unlikely to drive a sustainable rally.

PANews, December 9—Matrixport analyzed in today’s chart that retail participation in the crypto market remains relatively low. Taking South Korea, a historically retail-driven market, as an example: current trading volumes are significantly lower compared to the peaks in December 2023 and 2024, when daily volumes reached several billion dollars, while now they barely hover around $1 billion. This reflects that short-term retail capital has yet to make a notable return.

In such a market environment, some newly launched or expanding trading platforms continue to struggle to see sustained growth in trading volume. Some previously high-profile IPO plans have also noticeably slowed their pace. Without a broader return of retail participants, even if the Federal Reserve chooses to cut interest rates in the future, looser monetary policy alone is unlikely to drive a truly sustainable rally. Put simply, without trading volume, market sentiment is hard to accumulate; without sentiment, trading volume is also difficult to expand.