There is a huge difference between the participants in traditional finance and the crypto market.

In traditional markets, institutions like banks, funds, and insurance companies hold the dominant voice, while retail investors are merely followers. The pricing system is relatively mature, and price fluctuations are limited. But the crypto market is a completely different world—retail investors dominate, and whales with enormous holdings can trigger dramatic market swings at any time. Although institutional funds are gradually entering, market sentiment remains far more volatile.

Why is the crypto market so much more thrilling than the stock market? Just look at the participant structure. Traditional finance is led by professional institutions, with retail investors making up a small proportion, resulting in relatively stable markets. In the crypto space, retail investors are the main force, and any move by a whale can cause huge waves, while institutional investors are still testing the waters. Emotion-driven trading is the norm here, and roller coaster-like market moves happen almost every day.

Although both markets are about making money through investment, the rules of the game are worlds apart. In traditional finance, pricing power is firmly in the hands of large institutions, and retail investors can only passively accept it. In crypto, retail investors have more of a voice, whales entering or exiting can quickly reshape the market landscape, institutional funds are just starting to get involved, and the pace of sentiment changes is dizzying.