Bitcoin Retail Demand 30-Day Change Is At Historically Red Levels

On-chain data shows the demand from the retail investors has remained at low levels recently despite the rally Bitcoin has seen to a new high.

Fresh data from the chain shows that retail investor demand has remained low despite Bitcoin’s recent rally to a new all-time high (ATH).

In a recent analysis, CryptoQuant analyzed the 30-day change in Bitcoin Retail Investor Demand, an on-chain indicator that measures demand for the cryptocurrency among retail investors.

The indicator uses the transaction volume of moves valued at less than $10,000 to track activity related to this cohort, as retail investors are the smallest of holders on the network.

The chart below shows the trend in Bitcoin Retail Investor Demand 30-day change over the last few years.

According to the chart, Bitcoin Retail Investor Demand noted a sharp positive monthly change during the price bull run past $100,000 last year.

This indicates that the volume of these small holders saw a sharp uptick. This isn’t anything out of the ordinary, as this group tends to find sharp price action exciting, so their transfer activity usually increases during rallies.

However, the scale of the spike was something extraordinary, as it dwarfed any other high in the indicator from the last few years. From the chart, it’s clear that this peak in the indicator occurred near the price top.

In fact, all of the previous large spikes that the analyst has highlighted also took place around some sort of a top in the cryptocurrency. So it would appear that an excessive amount of Fear Of Missing Out (FOMO) from the retail investors is something that has been bearish for price rallies.

Since last year’s spike, Bitcoin Retail Investor Demand has seen its 30-day change undergo a sharp reversal. The metric has now not only fallen into the negative territory, but has also actually reached a historical low of -22%.

Interestingly, the indicator’s downtrend has continued despite Bitcoin’s price rally to the new ATH. As such, it would seem that the retail investors haven’t yet started pouring back into the cryptocurrency.

Given the historical pattern where FOMO is shown to be fatal for rallies, this lack of optimism among the retail cohort may allow the current run to continue for a bit longer.

BTC Price

At the moment, Bitcoin is trading around $106,400, having risen by more than 15% over the last week.