Skip to main content

Bitcoin Retail Demand At 6-Month Low — But Institutional Investor Activity Keeps Rising

The price action of Bitcoin has been quite strong over the past week, exhibiting good signs of recovery from last weekend’s low. While the premier cryptocurrency travelled as high as $108,000 in the last few days, it is now hovering around the $107,000 mark. The latest on-chain data suggests that a group of investors has stayed out of the market despite the price resilience of Bitcoin in recent months.

BTC Retail Demand Falls By 10% In June: Analyst

In a June 28 post on social media platform Z, on-chain analyst Maartunn revealed that a cohort of market participants known as retail investors has been relatively inactive over the past few months. This on-chain revelation is based on the Retail Investor Demand metric, which estimates the demand for BTC amongst small-scale investors.

In essence, this on-chain metric tracks the activity of small wallets typically involved in transfers of small sizes. Specifically, this Retail Investor Demand indicator measures the percentage change in the cumulative volume of small transactions (worth $10,000 or less) over a 30-day period. 

Bitcoin

In the chart highlighted by Maartunn, the 30-day change in the Bitcoin Retail Investor Demand plunged into the negative territory and has remained in the red since early June. More recently, the metric fell to the 10% level, which represents the lowest level in more than six months.

Considering that the Bitcoin price action has been fairly steady in this period, it is quite surprising that small-scale investors have refrained from entering the market. The market seems to be rather dominated by institutional investors — primarily through the spot Bitcoin exchange-traded funds.

Institutional And Bitcoin ETF Investors Take Charge 

This trend of falling retail demand was also spotlighted by on-chain analyst Burak Kesmeci on the X platform, saying that institutional investors and spot ETF investors seem to currently have a strong appetite for accumulating Bitcoin. In the past week, the US-based BTC exchange-traded funds posted a significant weekly total net inflow of $2.2 billion. 

Furthermore, Kesmeci mentioned that if the decline in retail demand continues, it could mean that the Bitcoin price is nearing a bottom. Hence, the flagship cryptocurrency could enjoy some bullish momentum and upward price movement over the coming weeks.

As of this writing, the price of BTC stands at around $107,244, reflecting a mere 0.1% increase in the past 24 hours. According to data from CoinGecko, the market leader is up by more than 4% on the weekly timeframe.

Bitcoin



from Bitcoinist.com https://ift.tt/zhSjasf
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

Ethereum On Exchanges Crashes To Historic Low Amid Market Volatility, A Bullish Signal For Price?

Ethereum saw a bounce back above the $3,000 price market , with bullish sentiment gaining momentum among investors, especially those on centralized exchanges. Even with the market experiencing sideways movements, the overall supply of ETH on crypto exchanges has fallen sharply, hitting unprecedented levels. Lowest Supply Of Ethereum On Exchanges Recent signals from on-chain metrics indicate that the Ethereum market environment is undergoing a quiet yet significant transformation. This unfolding trend is due to the sharp drop in the supply of ETH available on cryptocurrency exchanges. Related Reading: Ethereum Network Fatigue? Monthly On-Chain Transactions Drops As Activity Slows Down As reported by Coin Bureau on the social media platform X, ETH supply on centralized exchanges has hit levels not seen in years. With more holders choosing long-term storage, staking, and self-custody over keeping their assets available for trade, this significant supply drain indicates a change in i...
Post a Comment
Read more

Past Performances Say Dogecoin Price Could Blast 200% To Clear $0.73 ATH Soon

The Dogecoin price could be getting ready for a fresh bullish wave as a crypto analyst projects a surge to new all-time highs . The analyst cites past performances as a reason for this bullish projection, highlighting the Dogecoin price action from previous bull cycles.  Dogecoin Price Past Performance To Push It Above $0.73 Crypto analyst Javon Marks took to X (formerly Twitter) on February 22 to share a bullish prediction of the Dogecoin price. The analyst highlighted past bull market performances to support his forecast, predicting that DOGE could soon rally above its current all-time high of $0.73905. In his chart, Marks revealed Dogecoin’s price action during the 2016/2017 bull run and the 2020/2021 bull market. In both cycles, DOGE seemingly experienced a rapid price crash, following a descending price channel . However, after a long period of consolidation, it recorded a massive price rally that triggered an ATH breakout to $0.00232 in 2018. During the 2021 bull marke...
Post a Comment
Read more