Bitcoin is witnessing a strong resurgence in retail transaction activity after months of decline. Data from CryptoQuant, an on-chain analytics platform, highlights a rise in Bitcoin transactions under $10,000. This signals a shift in market sentiment from risk-averse to risk-on among retail investors.
Monitoring transactions below $10,000 offers insights into retail dynamics, contrasting with the fundamentals-driven institutional transactions. After Bitcoin’s all-time high (ATH) in March 2024, retail demand waned. However, a recent surge of 13% in retail demand over the last 30 days suggests a potential resurgence. This uptick coincides with Bitcoin climbing about 7%, from $63,142 on September 22 to $67,346 by October 22.
Rising retail activity and pricing hint at a possible upward trajectory for Bitcoin in Q4 2024. The digital asset market's swift recovery, following Iran's recent conflicts with Israel, also indicates a return to risk-taking behavior in the sector.
Despite the recent dip in retail on-chain activity, institutional investors have maintained consistent transactions and coin acquisitions. Analysts note this rise in Bitcoin’s price is drawing small investors back into trading, suggesting a shift towards lower risk aversion.
The rejuvenation of Bitcoin's retail activity points to growing interest in the landmark cryptocurrency. Nevertheless, with the upcoming US presidential elections, BTC may face heightened volatility.
Experts and trading firms highlight that a potential Q4 2024 crypto rally is closely tied to the election outcomes. Bitwise CIO Matt Hougan commented that any result other than a Democratic landslide could propel Bitcoin to $80,000 by the end of the year.
Moreover, Bitcoin dominance recently reached a cycle high of 58.9%, suggesting optimism for Bitcoin’s future price. However, this dominance surge could negatively affect altcoin performance, potentially leading to new ATHs for BTC but subdued gains for altcoins. It is crucial to recognize that this renewed retail interest might vary by region.
For instance, in South Korea, Bitcoin is experiencing slightly lower trading prices due to a negative 'kimchi premium,' indicating weak local investor sentiment. At the time of writing, Bitcoin is valued at $67,346, down 1.4% over the past 24 hours.