Why "Stabilization" is an Illusion The New Retail Reality: While retail participation has dropped from 90% to roughly 70% of the market, everyday traders always return the moment prices start to spike again. This cyclical "FOMO" (fear of missing out) prevents long-term price stability. Correlated Markets: Crypto is no longer an isolated ecosystem. It moves in a 96% tight correlation with the S&P 500. As long as the stock market swings based on central bank interest rates, crypto will swing right along with it. Liquidity Crises: Trading volumes on exchanges have recently hit two-year lows. When there are fewer buyers in the market, even a relatively small sell order can cause an aggressive, messy price crash.
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