Retail investor demand for Bitcoin has returned to levels seen before the ATH in March 2024, according to CryptoQuant, reports The Block.
“In the last 30 days, the metric has increased by ~13%, mirroring the scenario in March,” the report states.
From June to the end of September, the opposite trend was observed.
“The current situation contrasts with the first quarter, when demand mainly came from large players,” experts commented.
The current dynamics resemble those of previous cycles.
“In 2017, retail investors actively bought after surpassing the previous ATH,” analysts noted.
To assess demand from ordinary market participants, CryptoQuant tracks several key indicators.
Among them is the change in the total number of bitcoins held in wallets containing less than 1 BTC. Since mid-March, this figure has increased from 1.734 million BTC to 1.752 million BTC.
Another metric considered is the volume of on-chain transactions under $10,000.
The increase in this indicator was accompanied by growing interest from institutional investors, who have been increasing their share in digital gold throughout the year.
This was reflected in the dynamics of inflows into BTC-ETF (over $21 billion).
Bitfinex warned that inflows into exchange-traded funds do not guarantee that the price of the first cryptocurrency will overcome resistance levels.
“We remain cautious. […] Previous attempts to surpass the $70,000 mark, which were accompanied by large ETF inflows, were unsuccessful. Historical volatility indicates the possibility of further fluctuations [within the range],” specialists concluded.
Earlier, QCP Capital noted high chances of Bitcoin and Ethereum breaking through resistance levels at $70,000 and $2,800, respectively.
According to BlackRock CEO Larry Fink, digital gold will continue to appreciate regardless of who occupies the White House.