Retail Investor Dominance

Definition ∞ Retail Investor Dominance describes a market condition where individual, non-professional investors constitute the primary driving force behind price movements and trading volumes. This contrasts with institutional dominance, where large financial firms hold sway. In such a market, sentiment, social media trends, and accessible trading platforms often wield significant influence. It can lead to increased volatility and less predictable market behavior.
Context ∞ Retail Investor Dominance is frequently observed and reported in cryptocurrency news, particularly during bull markets or periods of heightened speculative activity. Analysts often attribute rapid price surges or sudden corrections to the collective actions of a large retail base. The rise of user-friendly trading applications has further empowered this segment of the market. Understanding this dynamic is crucial for interpreting market trends and volatility in digital assets.