Benjamin Cowen, founder and CEO of IntoTheCryptoverse, says the crypto market may be entering a prolonged "ghost town" phase as retail investors continue to exit and show little sign of returning in the near term.

What Happened: Cowen said retail participation was the primary driver of the major bull markets in 2017 and 2021.

While Bitcoin (CRYPTO: BTC) rallied in 2025, he noted that the move was largely powered by institutional ETF inflows rather than broad-based retail demand.

According to Cowen, years of capital misallocation into scams and meme coins have damaged trust in the wider crypto ecosystem, leading to lasting retail disengagement.

Social engagement metrics support this view, with crypto-related activity falling to multi-year lows despite Bitcoin trading near cycle highs.

Crypto-focused YouTube channels now average roughly 500,000 daily views across the sector, down sharply from an estimated 2–3 million during the 2021 bull market.

Cowen also pointed to severe dilution in the altcoin market, noting that more tokens were launched in a single day in 2025 than during the entire period from 2011 to 2021.

Why It Matters: Cowen rejected the idea that Federal Reserve policy is the primary reason for crypto's underperformance.

He noted that both risk and non-risk assets, including the S&P 500, gold, and silver, have reached all-time highs despite elevated interest rates.

The key distinction, he argued, is that equities represent businesses with real revenue and profits, while many altcoins rely on circular token issuance, where "yield" is generated by diluting existing holders rather than creating value.

Cowen compared the current market to the 2019 "apathy top," suggesting the ghost-town conditions could persist into early 2026, characterized by consolidation or gradual downside pressure.

He said a meaningful return of retail participation would likely require a renewed focus on genuine utility and Bitcoin-centric development rather than speculative token launches.

Image: Shutterstock