As the price of the leading cryptocurrency stabilizes, retail investors are becoming increasingly active, according to findings by CryptoQuant.
This resurgence often signals a revival of confidence and could serve as an additional catalyst for future price movements.
While they may not always time their market entries perfectly, retail investors’ behavior is an important sentiment barometer. By entering the market, they typically create positive feedback, intensifying buying pressure, experts explained.
Analysts classify users with balances up to $10,000 as retail investors.
The associated demand metric (30 DMA) increased by 3.4% from April 28 to May 13.
Experts have forecasted the continuation of this trend should the bullish momentum persist, laying the groundwork for a new wave of asset adoption.
“We can expect an increase in the number of active addresses, UTXO, as well as metrics like the number of new addresses and transaction volume, reflecting the ecosystem’s steady expansion,” analysts explained.
Earlier, experts identified reasons for Bitcoin’s consolidation after testing $105,000.
In April, Standard Chartered urged the purchase of the leading cryptocurrency and forecasted its price to rise to $120,000 in the fourth quarter.