There is a ‘massive disconnect’ between retail and pros in crypto: Bitwise CIO

According to a crypto executive, while experienced investors in the crypto industry are more optimistic than ever about the overall crypto market, retail interest is at rock-bottom levels not seen in years.

It’s a sentiment echoed across the crypto industry, though some analysts argue it varies between crypto tokens.

Retail sentiment is ‘the worst in years,’ says exec

“There is an absolutely massive disconnect between retail and professional sentiment in crypto right now,” Bitwise chief investment officer Matt Hougan said in a Feb. 7 X post.

“Retail sentiment is the worst it’s been in years, while professional investors are extraordinarily bullish. It’s like living in two completely separate worlds,” Hougan said.

The Crypto Fear and Greed Index, which measures overall sentiment in the crypto market, reads a “Fear” score of 44, down 25 points from last month’s “Greed” score of 69.

Bloomberg ETF analyst James Seyffart said it is down “because retail is holding a ton of altcoins and memecoins etc that are down really bad.” The three largest memecoins by market capitalization are down more than 20% over the past seven days.

Pepe (PEPE) is down 35.31%, Shiba Inu (SHIB) is down 20.82%, and Dogecoin (DOGE) is down 24.69%, as per CoinMarketCap data.

Pseudonymous crypto trader DFarmer said, “I don’t think I remember an extended alt bloodbath this bad ever.”

DeFi Dad said in an X post on the same day that Solana (SOL) retail sentiment is “a little more bullish than professionals,” while it’s the opposite for Ether (ETH).

“ETH sentiment for retail is worst ever–prob more bullish with pros,” he said.

Solana has become the preferred network for memecoin traders, driving a spike in retail interest. Meanwhile, Ether is being scooped up by US President Donald Trump’s DeFi project, World Liberty Financial, grabbing the attention of crypto professionals.

Related: Bitcoin retail sellers send $625M to Binance before ‘first cycle top’

Donald Trump’s presidential win in November sparked a broader crypto rally, pushing Bitcoin to hit $100,000 for the first time in December 2024. However, recent macro events — like Trump’s tariffs on Canada, Mexico, and China — shook the market, triggering the largest crypto liquidation event in history.

Although Trump paused the planned tariffs on Canada and Mexico after negotiations, Bitcoin remains below the key $100,000 psychological level, trading at $96,609 at the time of publication.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions