Bitcoin's price is influenced by retail investors' trading psychology, but not dominated by it. Market sentiment, driven by fear, greed, or FOMO, can trigger short-term price swings, especially during hype cycles or panic sell-offs. Social media and news amplify these emotions, impacting retail behavior. However, institutional investors, market makers, and macroeconomic factors like inflation or regulatory news often exert stronger influence. Retail traders lack the capital to sustain long-term trends alone. On-chain data shows large holders ("whales") and exchange flows frequently lead price movements, with retail following. While retail psychology contributes to volatility, it’s one of many factors in Bitcoin’s complex price dynamics.