On-chain data suggests that retail investors in Bitcoin are losing interest in the asset as their trading volume has seen a sharp decline over the past month.
The volume of retail investors in Bitcoin has seen a significant decline recently
As CryptoQuant community analyst Maartunn explains in a new report mail On X, retail investor demand has seen significant volatility recently. “Retail Investor Demand” here refers to an indicator that tracks the demand to use the existing network among the retail group.
Retail investors are the smallest entities on the network, so their transactions generally tend to be small in size. Therefore, the volume of transactions related to transfers worth less than $10,000 can be attributed to the activity of these investors.
Retail investor demand uses the 30-day change in this volume to calculate its value. Below is a chart of the metric shared by the analyst that shows its trend over the past few years.
The value of the metric appears to have registered a sharp plunge in recent weeks | Source: @JA_Maartun on X
As shown in the chart above, retail investor demand for Bitcoin rose to high positive levels during the bull rally that occurred in the last two months of 2024. This indicates that the rally caught the attention of the masses, prompting them to make a large amount of moves on the network. .
This is not a particularly unexpected pattern, as investors tend to find sharp price action exciting, so they become more active than usual. The magnitude of the rise was very noticeable this time, as the metric reached a peak value of 31.7%.
After this rise, retail investor volume slowed its rise and as the downtrend in the cryptocurrency began, the 30 change fell straight into the red zone.
The decline in the volume of these shrimp has been reinforced in this new year 2025, as demand from retail investors now lies at a low level of negative 21.7%.
This value indicates that the group’s transaction activity has witnessed a decline of 21.7% over the past 30 days. The decline is the largest the measure has seen since mid-2021.
A slowdown in interest from retail investors may not be all bad for Bitcoin, although the aforementioned negative rally in 2021 occurred around a bottom in the price.
In some other news, Ethereum, the second-largest cryptocurrency by market cap, saw a significant amount of exchange outflows over the past week, according to data from the market intelligence platform. IntoTheBlock.
The weekly change in a couple of core ETH on-chain metrics | Source: IntoTheBlock on X
In total, centralized exchanges saw a net $1.42 billion worth of Ethereum leave their wallets over the past week, a sign that investors may be in an accumulation phase.
Bitcoin price
Bitcoin fell towards the $91,000 level yesterday, but the asset appears to have made some recovery today as its price is now trading around $93,800.
Looks like the price of the coin has been following a downwards trajectory over the last few days | Source: BTCUSDT on TradingView
Featured Image by Dall-E, CryptoQuant.com, IntoTheBlock.com, Chart by TradingView.com
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