Despite Bitcoin's recent price increase, retail investor participation in the market remains low.
The Korea Premium Index observed by CryptoQuant stands out as an important indicator confirming this situation.
What does the Korean premium index show?
The Korea Premium Index is a critical indicator that measures the impact of retail investors on Bitcoin’s price movements. The index is currently below -0.5, indicating that retail investors are not making a significant contribution to the current price rally.
Historically, the Korea Premium Index’s extreme rises coincide with periods when Bitcoin’s price has peaked, but currently the index is indicating that Bitcoin is not yet close to such a peak.
The importance of retail participation
The participation of retail investors in the Bitcoin market is often a factor that increases volatility and accelerates price movements. The fact that the index remains at low levels may indicate that the current increase in Bitcoin prices is driven more by institutional investors or big whales.
Experts say that continuing to monitor the movements of the Korea Premium Index is a valuable tool for predicting potential Bitcoin price peaks. A bounce in the index could indicate a strong re-entry into the market by retail investors, which could have a significant impact on the price.
Stay tuned.