The demand from retail investors in Bitcoin remains surprisingly low, even amidst the cryptocurrency's rally to new heights. According to a CryptoQuant Quicktake article, the 30-day change in Bitcoin Retail Investor Demand—a key on-chain indicator—has shown historically low levels, suggesting the smallest investors aren't actively participating in the current price increases.
Retail investors typically engage in smaller transactions, generally under $10,000, which this metric tracks to gauge demand within this cohort. A recently shared chart shows the indicator's fluctuating trend over recent years.
Historically, the Bitcoin Retail Investor Demand has surged sharply, especially during last year's price bull run that pushed Bitcoin past $100,000. Such spikes aren’t unexpected, as retail investors typically react with enthusiasm to significant price movements, leading to increased transfer activities during these rallies.
However, the exceptional scale of last year's spike was unprecedented. The peak coincided with the market's price top and mirrored previous spikes centered around similar price surges. It seems excessive Fear Of Missing Out (FOMO) among retail investors has had bearish implications for past rallies.
Since then, the indicator has reversed sharply, currently residing in negative territory at a historical low of -22%. Intriguingly, this downtrend persists despite Bitcoin achieving a new all-time high (ATH), indicating retail investors are yet to reenter the market significantly.
This lack of retail enthusiasm could bide well for Bitcoin, potentially allowing the current rally to continue without the burden of overblown retail FOMO.
As of now, Bitcoin is trading at approximately $106,400, reflecting an increase of more than 15% over the past week.