Originally published on: October 22, 2024
Recent data suggests that Bitcoin retail activity is on the rise, reflecting a spike in BTC price to all-time highs after a period of stagnation. According to CryptoQuant, there has been a 13% increase in transactions valued at less than $1,000, indicating a growing interest from small investors.
Despite a significant decrease in retail interest following the peak in March, there are signs of a resurgence in demand. While mainstream interest in Bitcoin remains subdued compared to institutional investments, the recent surge in transaction volumes among retail investors is a positive indicator.
Cauê Oliveira, a contributor at CryptoQuant, highlighted the notable growth in retail demand over the past month, reminiscent of the period leading up to the previous historical high in March. This surge in activity is attributed to the recent uptrend in BTC/USD prices, prompting small investors to return to trading and signaling a lower risk aversion pattern.
The 30-day data through October 20 shows a nearly 10% increase in BTC/USD prices, with transaction volumes under $1,000 spiking by 13% during the same period. This growth is illustrated in a chart that mirrors the weeks before the March peak, suggesting a potential upward trend in retail participation.
Market observers are closely monitoring risk aversion sentiments amidst increasing global liquidity trends and growing risk-on appetites. Despite the upcoming US presidential election and uncertainties in the market, Bitcoin and Ethereum are approaching key resistance levels.
While retail interest in Bitcoin remains subdued in the US, with the Coinbase premium barely positive, the overall market sentiment is bullish as Bitcoin registers its highest weekly close since early June. This surge in demand from retail investors signifies a shift towards lower risk aversion and a positive outlook for the cryptocurrency market.
It’s important to note that this article does not offer investment advice or recommendations. Investors should conduct their own research and analysis before making any financial decisions.
For more insights and updates on market trends, subscribe to the Markets Outlook newsletter for critical information on investment opportunities, risk mitigation strategies, and trading insights delivered every Monday.
