Happy pleasantry fellow members of this ever growing community,hope you are coping well,today I will be discussing on retail investors,who they are ,what they do and how they affect the Bitcoin bull run.as the Bitcoin bull run is fast approaching,this is the best time to discuss about the retail investors.

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who are retail investors

This are basically individuals that invest their money in the financial market,as they do the opposite of what institutional investors do.wgwn we talk about institutional investors this investors who invest on behalf of a company or any other organization.retail investors can be anyone, either a student,a business man ,a young professional or even elderly parents.they on their own tend to invest smaller amount of fund when compared to the institutional investors.This retail investors are grouped as individual investors who buy and sell assets,e.g Bitcoin,for their own personal benefits.

Roles of retail investors during Bitcoin bull run

During the Bitcoin bull run,the retail investors plays a vital role in term of their influence in the market price.the investment behavior in which they attain is often influenced by FOMO(fear of missing out)and the online community, which yields rapid Price increase and volatility.
Retail investors are not as sophisticated as the institutional investors,and they tend to make their investment decision based on their emotions and herd behavior.and in essence this can lead to excessive buying during bull market.

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How FOMO influence retail investors

FOMO (fear of missing out)can have a major effect on retail investors by moving them to buy Bitcoin during a bull run, even at inflated price.this is a very powerful phycological force which tends to drive retail investors to acquire assets like Bitcoin during bull run.FOMO comes into place when an investor thinks that there is a tendency for him to miss out on profits if they do not buy an asset that is rapidly rising in price. During the case of Bitcoin bull run,FOMO can attribute to self-fulfilling prediction,as the price rate of Bitcoin continue to rise due to increase demand from retail investors.

How online communities influence retail investors

The online community can have a major influence on the retail investors in the case of a Bitcoin bull run or during the bull run.online website such as Twitter, YouTube and reddit can create a sense of camaraderie and shared joy around Bitcoin,in effect this will lead retail investors to acquire the cryptocurrency even if it is not logical or even when the price rate are not justifiable by the fundamentals.
Reddit forums can also generate hype around Bitcoin,by encouraging each other to acquire and attain the cryptocurrency.twitter on it own can also prove to be influential,when many crypto influencers in Twitter starts providing investment advice and promoting their favorite crypto.

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