Bitcoin analysis sees ‘lower risk aversion’ as retail demand adds 13%
2024.10.22 05:12
Bitcoin (BTC) retail activity is mimicking the BTC price run to all-time highs after months of stalemate, new data suggests.
In one of its latest Quicktake blog posts on Oct. 21, onchain analytics platform CryptoQuant unveiled a 13% jump in transactions worth under $1,000.
Bitcoin “small investors” show signs of life
Bitcoin retail interest has yet to stage a noticeable comeback after declining dramatically following March’s all-time highs for BTC/USD.
While mainstream interest outside institutional circles remains lacking, particularly when viewed through metrics such as Google search data, there are signs that change is coming.
For CryptoQuant contributor Cauê Oliveira, transaction volume figures hold the key.
“In the last 30 days, retail demand grew by about 13%, highlighting a scenario that was only seen in March, when we were close to the last historical high,” he summarized.
“Note that in the last 4 months we have seen a decrease in the activity of these small investors, while whales maintained a high amount of transactions and absorption of coins.”
Bitcoin retail investor volume (screenshot). Source: CryptoQuant
In the 30 days through Oct. 20, BTC/USD gained nearly 10%, data from Cointelegraph Markets Pro and TradingView shows.
Transaction volumes worth up to $1,000 increased by 13% in the same period, and an accompanying chart draws similarities to the weeks prior to the March peak.
“This recent rise in bitcoin is causing small investors to return to trading, signaling the beginning of a pattern of lower risk aversion,” Oliveira concluded.
BTC/USD 1-day chart. Source: TradingView
Coinbase premium lags despite $69,000 BTC price trip
Risk aversion is a theme currently on the radar for many a crypto market observer.
Related: Bitcoin price analysis sees rematch with 2021 record high vs. S&P 500
Global liquidity trends are increasing broader risk-on appetites, and commentators see the trend strengthening through the United States Presidential Elections and beyond.
“Both BTC and ETH have yet to clear July highs but are closing in on key 70k and 2800 resistance levels,” trading firm QCP Capital wrote in its latest bulletin to Telegram channel subscribers on Oct. 22.
“A break above these levels is likely to attract massive retail attention. With the US elections just 15 days away and equities looking strong, the market is definitely optimistic as Risk Reversals have flipped in favour of Calls across all tenors.”
US retail interest in Bitcoin, meanwhile, is still proving stubborn.
CryptoQuant data shows that the Coinbase premium — the difference in pricing between the BTC/USD pair on the largest US exchange, Coinbase, and Binance’s BTC/USDT equivalent — is barely positive, even as Bitcoin sees its highest weekly close since early June.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
