Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
CryptoQuant says bitcoin retail activity picked up in October after summer lull

CryptoQuant says bitcoin retail activity picked up in October after summer lull

The BlockThe Block2024/10/23 11:16
By:Brian McGleenon

According to CryptoQuant analysts, retail investor activity in bitcoin increased in October and has gained over the past 30 days.This increase in retail demand for bitcoin is happening in tandem with growing institutional interest, analysts said.

CryptoQuant says bitcoin retail activity picked up in October after summer lull image 0

Retail investor interest in Bitcoin increased in October, with on-chain activity from this cohort gaining over the past 30 days and approaching levels seen before the all-time high in March 2024, according to CryptoQuant. 

CryptoQuant’s Retail Investor Demand Change metric showed that retail investor activity, which had slowed between June and late September, has begun to pick up throughout October. "In the last 30 days, retail demand grew by about 13%, highlighting a scenario similar to March when we were close to the last historical high," CryptoQuant analysts said in a report on Tuesday.

Retail demand rising alongside institutional interest

This increase in retail demand for bitcoin is happening in tandem with growing institutional interest , according to CryptoQuant Head of Research Julio Moreno. He noted that while retail investors are returning to the market, institutional investors have steadily increased their exposure to bitcoin throughout the year. "This contrasts with what happened in Q1 2024, where demand was mostly driven by larger investors," Moreno told The Block.

Moreno said that the current retail and institutional demand dynamics appear to be similar to what happened in previous bitcoin market cycles. "In 2017, retail accumulated bitcoin aggressively after the price broke above its previous all-time high, and continued to buy as bitcoin rallied towards $20,000," he said, adding that the recent uptick in retail activity could indicate a similar pattern of renewed optimism.

To measure retail investor demand, CryptoQuant looks at a few key indicators. One method is tracking the total amount of bitcoin held by wallets that contain less than one bitcoin. Moreno said that this amount has grown from 1.734 million BTC in mid-March to 1.752 million BTC currently, an increase of 18,000 bitcoin. Another metric is the volume of on-chain transactions valued at less than $10,000, which reflects the activity of small investors and provides a sense of market sentiment among non-institutional participants.

Bitcoin retail investor demand spiked before March's all-time high. Image: CryptoQuant

Alongside the surge in retail investor demand, institutional interest has also been climbing, notably reflected in the increasing inflows into spot bitcoin exchange-traded funds (ETFs). As of mid-October, cumulative net inflows into spot bitcoin ETFs surpassed $21 billion. However, after seven consecutive days of positive net inflows, ETF activity reversed to show negative daily flows on Tuesday. According to data from SoSoValue, the 12 spot bitcoin ETFs reported total net outflows of $79.09 million. The day’s entire outflows came from Ark and 21Shares’ ARKB, which saw $134.74 million leave the fund.

Bitfinex analysts told The Block that while ETF inflows have bolstered confidence in bitcoin as a legitimate investment vehicle, in recent weeks, prior attempts by the digital asset to break past the $70,000 level have failed, even though similar ETF inflows have accompanied them.

"We remain cautious, noting that inflows do not always lead to sustained price increases and previous attempts by bitcoin to break past the $70,000 level, accompanied by large ETF inflows, have failed. The historical volatility of bitcoin prices suggests that further fluctuations may occur, despite the inflows boosting confidence in bitcoin ETFs as a viable investment vehicle," Bitfinex analysts said.


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Ubisoft reacts to Assassin’s Creed Shadows leak showing free battle pass rewards

Share link:In this post: Ubisoft responded to the recently released leaks of the Assassin’s Creed Shadows game, which showed supposed free battle pass rewards. The video game publisher disputed the leaks as inaccurate and insisted that it wanted to clarify the game’s availability on the new platform, Animus Hub. Ubisoft revealed that all players could access free regular content and Animus Hub rewards while eliminating any paid subscriptions for Animus Hub.

Cryptopolitan2024/11/17 06:33

Bitcoin strategic reserve? Why not Dogecoin reserve, says co-founder

Share link:In this post: Dogecoin co-founder Billy Markus suggested creating a national Dogecoin reserve. Trump’s Bitcoin reserve idea has led to talks about Dogecoin as a government asset. Will Elon Musk’s support for Dogecoin reserve?

Cryptopolitan2024/11/17 06:33

WisdomTree’s Will Peck reveals how gov’t Bitcoin holdings can influence future prices

Share link:In this post: Bitcoin’s got a fairly simple supply-demand dynamic. It’s a matter of demand. Bitcoin’s supply is fixed, but government holdings could increase demand swings and affect prices.

Cryptopolitan2024/11/17 06:33

CFTC clears path for spot Bitcoin ETF options listing

Share link:In this post: The CFTC has said it no longer oversees clearing spot Bitcoin ETF options. According to an ETF analyst, this will allow for the listing of options on spot Bitcoin ETFs. Following earlier approvals from the SEC, the Options Clearing Corporation must now approve and list these options.

Cryptopolitan2024/11/17 06:33