Bitcoin’s surging price is increasingly pricing out average investors, raising fears that the cryptocurrency’s current rally could lose momentum, according to new analysis from 10x Research. The firm warned that diminishing returns and shrinking retail participation may threaten the predicted extension of the ongoing bull market cycle.
Retail buyers sidelined
Bitcoin’s price has climbed sharply in recent months, trading near its highest level since early 2022. But as the world’s largest cryptocurrency continues to attract institutional flows, smaller investors are finding it harder to enter the market.
“Bitcoin is becoming too expensive for retail investors to meaningfully participate,” said Markus Thielen, head of research at 10x Research. “The market’s liquidity is increasingly concentrated among large holders and institutional players, which weakens the foundation for a sustainable retail-driven rally.”
The report noted that trading volumes from small wallets — typically holding less than 0.1 BTC — have fallen sharply, while institutional inflows through exchange-traded funds and over-the-counter desks have reached record highs.
Diminishing returns in new cycle
According to 10x Research, Bitcoin’s historical four-year cycle, driven by halving events and speculative demand, appears to be losing strength. Each successive cycle has generated smaller percentage gains and shorter momentum phases. Analysts now fear that the combination of reduced retail enthusiasm and concentrated ownership could cap upside potential in the current phase.
“Without broad-based participation, Bitcoin risks stagnating below its previous all-time high for longer than expected,” the report said, suggesting that a major correction could occur if institutional demand cools or profit-taking accelerates.
Institutional dominance grows
Large asset managers and hedge funds have increasingly dictated Bitcoin’s price movements, a trend that has both stabilised and distorted the market. Institutional demand has reduced volatility, but it has also shifted Bitcoin’s identity from a grassroots, decentralised asset to a high-value investment vehicle accessible mainly to the wealthy.
This institutional dominance, according to analysts, could undermine the narrative that first attracted retail investors — that of a democratic, borderless financial system accessible to everyone.
Wider implications for crypto markets
The loss of retail momentum could spill over into the broader cryptocurrency ecosystem. Altcoin markets, often fuelled by retail speculation, have seen declining volumes, with several smaller tokens trading at multi-year lows despite Bitcoin’s rise.
“The crypto market’s health depends on retail energy,” Thielen said. “If Bitcoin becomes an elite asset, it risks pulling the entire sector into a prolonged stagnation.”
Market outlook
Despite the warning, 10x Research said Bitcoin’s long-term fundamentals remain sound, driven by institutional adoption, technological upgrades, and limited supply. However, the firm emphasised that the next stage of growth will require renewed accessibility — through fractional investing tools, education, and broader inclusion — if Bitcoin is to sustain its role as a global digital asset.
Newshub Editorial in North America – 28 October 2025
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