Overview

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The cryptocurrency market experienced a downturn in the last 24 hours, predominantly driven by retail investors transitioning from larger-cap tokens to smaller, more speculative assets.

Market Trends

Both Bitcoin (BTC) and Ethereum (ETH) saw approximately a 2% decline, while the CoinDesk 20 Index fell by 2.7%.

“We’ve observed a significant week-on-week increase in retail participation, reinforcing the broader narrative of rising optimism,” said Jake O., an over-the-counter trader at Wintermute. “The shift down the risk curve is most evident in retail screen flows.”

Institutional investors have been more cautious, continuing to accumulate Bitcoin, Ether, and XRP, while reducing their positions in Solana, which is facing ongoing challenges.

The market is keeping an eye on economic factors, including inflation and trade policies, which are influencing risk appetite across both crypto and traditional markets.

Looking ahead, the upcoming inclusion of Coinbase in the S&P 500 on May 19 could provide further momentum for digital assets. Stay tuned!