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Retail's final crypto edge as dollar weakens and institutions move

This Could Be Retail's Last Edge in Crypto | Market Flooded with Dollars

By

Elena Ivanova

Jul 3, 2025, 09:37 AM

2 minutes reading time

A group of retail investors looking at cryptocurrency charts and market trends on a laptop
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A recent push by President Donald Trump for a substantial tax-and-spend legislation could mark a pivotal moment for retail involvement in cryptocurrency. As the dollar depreciates and inflation rises, the shifting dynamics threaten to diminish retail opportunities in the crypto market.

Economic Context and Market Response

Trump's One Big Beautiful Bill is set to flood markets with more dollars, causing the dollar's value to potentially drop another 30-35%. This financial boost is impacting everything priced in USD, including cryptocurrencies.

"With Wall Street getting full access, those huge 100x meme coin moves will likely be a thing of the past," warned one observer.

Market indicators show Bitcoin (BTC) dominance is expected to fall, while stablecoins like USDT and USDC are also losing traction. Fresh investments are flowing back into BTC and Ethereum (ETH), signaling that institutions are preparing for significant changes in the crypto market.

Solana's Game-Changer

Interestingly, Solana has launched an update allowing users to swap SOL for tokenized stocks directly within the Phantom wallet. This shift indicates a deeper integration of traditional finance into the crypto space, solidifying the view that institutional players are moving in quickly.

One commentator pointed out, "The days of random 100x meme coins might be fading." This reflects a growing consensus that institutional liquidity will bring stability but reduce the wild swings that retail investors have come to expect.

Key Themes from Discussion

  • Retail vs. Institutional Dynamics: Many see traditional finance entering the crypto domain as a double-edged sword.

  • Investment Timing: Some users emphasize the importance of buying at lows instead of chasing highs.

  • Future Opportunities: Despite the current trends, many believe that opportunities will still exist, especially in projects that offer core utility.

Positive and Negative Sentiments

Feedback is mixed; while some express concerns that retail will lose their edge, others remain optimistic about upcoming opportunities.

Key Insights

  • ๐Ÿ“‰ Dollar has dropped about 11% so far this year.

  • ๐Ÿš€ Major influx of money likely into BTC and ETH, as indicated by dominance charts.

  • ๐Ÿ”ฅ "I'm buying more," reflects ongoing interest among retail investors despite concerns.

As inflation continues to spike, many are watching closely how these shifts unfold. Are the days of big retail gains nearing an end? Only time will tell, but the race to adapt is on.

The Road Ahead for Crypto Enthusiasts

There's a strong chance that institutional players will redefine the crypto landscape as they bring in significant liquidity. Experts estimate around a 60% probability that Bitcoin and Ethereum will stabilize while driving up new investments in core utility projects. As retail opportunities shrink, investors may need to rethink strategies, focusing more on established coins rather than seeking the next big meme creation. If inflation continues to rise and institutional involvement deepens, retail investors might find themselves adapting or facing tough competition in the months to come.

A Parallel from the Financial Shift in the 1970s

The current shift in the crypto market echoes the financial upheaval of the 1970s, when the U.S. faced inflation and currency depreciation following the end of the gold standard. Just as that era saw a surge in alternative investmentsโ€”like commodities and foreign currenciesโ€”today's investors may pivot towards cryptocurrencies and decentralized projects for stability. The turbulence of then, much like today, sparked innovation and new strategies, leading to market adjustments that many didnโ€™t see coming. In both scenarios, adaptability became key to survival and success.