Bitcoin retail activity is mimicking the price of BTC surging to all-time highs after months of stalemate, new data suggests.
In one of the Quicktake blog posts on October 21, on-chain analytics platform CryptoQuant said there was a 13% increase in transactions under $1,000.
Bitcoin ‘small investors’ show signs of revival
Bitcoin (BTC) retail interest has yet to recover significantly after declining sharply since BTC/USD’s all-time high in March.
Mainstream attention outside of institutions is still lacking, but there are signs that change is coming, especially when seen through indicators like Google search data.
For CryptoQuant contributor Cauê Oliveira, volume numbers are key.
“In the last 30 days, retail demand has increased by about 13%, highlighting a scenario that was only seen last March,” he said.
“While activity from smaller investors has declined over the past four months, whales have maintained high trading volume and coin absorption.”
Bitcoin retail investor volume (screenshot). Source: CryptoQuant
In the 30 days ending October 20, BTC/USD rose nearly 10%, according to data from Cointelegraph Markets Pro and TradingView.
Trading volumes worth up to $1,000 increased 13% over the same period, with the attached chart showing similarities to the weeks before the March peak.
“The recent rise in the price of Bitcoin has signaled a decline in risk aversion as smaller investors return to trading,” Oliveira said.
BTC/USD 1-day chart. Source: TradingView
Coinbase Premium Delayed Despite $69,000 BTC Price Fluctuation.
Risk aversion is a topic that many cryptocurrency market observers are currently focusing on.
relevant: Bitcoin price analysis shows a rematch of 2021 record highs versus the S&P 500.
Global liquidity trends indicate a broader appetite for risk, a trend that commentators see strengthening through the US presidential election and beyond.
“Both BTC and ETH have yet to break their July highs, but are approaching key resistance levels of 70,000 and 2,800,” trading firm QCP Capital wrote in its latest bulletin sent to subscribers of its Telegram channel on October 22.
“Beyond this level is likely to attract significant interest from retailers. “With the US election just 15 days away and equity markets showing strength, markets are clearly bullish with risk reversals favoring currencies across all time frames.”
Meanwhile, U.S. retail interest in Bitcoin remains stubbornly stubborn.
The Coinbase premium, the price difference between the BTC/USD pair on the largest U.S. exchange Coinbase and its BTC/USDT equivalent on Binance, is barely positive despite Bitcoin posting its highest weekly close since early June, according to CryptoQuant data. It turned out that it wasn’t.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.