Bitcoins retail demand drops by 17 Could this signal the start of a major rally
The demand for Bitcoin (BTC) from retail investors has dropped to its lowest level in five months, mirroring levels seen back in January. Interestingly, the previous low was followed by a substantial 75% increase over the next two months.
Data shared by CryptoQuant’s author, Axel Adler, on June 10, reveals that the average monthly change in demand for Bitcoin among retail investors with up to $10,000 in transfer volume has declined by 17% over the past 30 days.
Axel Adler pointed out that a similar drop to negative 18% in January resulted in Bitcoin’s price surging from $40,000 to $70,000 after the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. This surge propelled Bitcoin to its all-time high of $73,679 in mid-March.
In contrast to the declining retail interest, Bitcoin’s ETF trading volume has seen a notable increase. The combined trading volume for the top seven largest Bitcoin ETFs reached approximately $2.89 billion, the highest level since mid-May. This surge indicates renewed interest among investors, possibly in response to market downturns.
Moreover, Mike Alfred, a value investor and active crypto commentator, highlighted a discrepancy between Bitcoin’s price trends and the decline in organic search engine traffic on Google. Despite a spike in searches from Q4 2023 to early January 2024, the trend has been downward since then.
The substantial inflows into Bitcoin ETFs, alongside low retail engagement, suggest that institutional interest remains strong. This, combined with potential changes in the Consumer Price Index (CPI), could indicate that the market is still in the early stages of its next growth cycle.
Analysts and investors will be closely monitoring for signs of increased retail participation, which could signal a broader market upturn. At press time, Bitcoin is trading at $67,412, showing a 1.4% decrease in the last 24 hours, while trading volume has increased by 8% to reach $31.3 billion, with a market cap of $1.32 trillion.
Although current low retail demand may raise concerns, historical trends and ongoing institutional interest suggest that Bitcoin could be poised for significant growth in the coming months. As always, thorough analysis of market indicators and a long-term perspective will be crucial for navigating the dynamic world of digital assets.
