On-chain
data
shows
the
demand
from
retail
investors
for
Bitcoin
has
slumped
to
3-year
lows,
a
sign
that
may
be
bearish
for
BTC.
Bitcoin
Retail
Investor
Transfer
Volume
Has
Plummeted
Recently
As
explained
by
CryptoQuant
founder
and
CEO
Ki
Young
Ju
in
a
new
post
on
X,
retail
investor
demand
has
seen
a
sharp
decline
recently.
The
“retail
investors”
here
refer
to
the
smallest
investors
in
the
Bitcoin
market.
The
transfer
volume
corresponding
to
them
is
generally
used
to
track
the
demand
for
using
the
cryptocurrency
that’s
present
among
any
cohort.
In
the
case
of
retail
investors,
their
transactions
are
typically
valued
at
less
than
$10,000
due
to
their
small
size.
As
such,
Young
Ju
has
cited
the
30-day
change
in
the
total
transfer
volume
for
transactions
of
this
size
to
show
what
the
demand
among
retail
investors
is
currently
looking
like.
Below
is
the
chart
shared
by
the
CryptoQuant
founder
that
displays
the
trend
in
this
metric
over
the
past
few
years.
The value of the metric seems to have observed a sharp decline in recent days | Source: @ki_young_ju on X
As
is
visible
in
the
above
graph,
the
30-day
change
for
the
retail
investor
transfer
volume
has
recently
plunged
deep
into
the
negative
territory
for
Bitcoin,
implying
that
the
transfer
volume
associated
with
these
holders
has
been
shrinking.
The
decline
rate
is
quite
notable,
as
the
metric’s
value
is
currently
at
the
lowest
level
in
around
three
years.
This
drawdown
would
suggest
that
the
recent
bearish
action
in
the
market
has
made
retail
investors
lose
interest
in
the
cryptocurrency.
The
BTC
price
has
been
recovering
over
the
past
week,
but
it’s
clear
that
it
hasn’t
been
enough
yet
to
reignite
demand
among
this
cohort.
It
remains
to
be
seen
whether
the
transfer
volume
for
these
investors
sees
a
turnaround
in
the
coming
days
if
the
price
continues
in
this
trajectory.
While
demand
for
using
the
blockchain
has
been
low
among
retail
investors
recently,
they
have
still
been
buying,
as
analyst
James
Van
Straten
has
explained
in
an
X
post.
The trend in the retail investor demand for buying or selling the asset | Source: @jvs_btc on X
The
analyst
has
also
pointed
out
how
these
investors
have
started
to
behave
like
smart
money.
The
chart
shows
that
they
have
been
buying
net
amounts
during
dips
in
the
Bitcoin
price
while
selling
around
tops.
The
most
prominent
example
of
this
pattern
is
the
buying
spree
this
group
went
on
during
the
bear
market
lows
following
the
crash
due
to
the
collapse
of
the
cryptocurrency
exchange
FTX.
BTC
Price
When
writing,
Bitcoin
is
trading
around
$64,100,
up
over
11%
in
the
last
seven
days.
Looks like the price of the asset has been moving sideways over the past few days | Source: BTCUSD on TradingView
Featured
image
from
Dall-E,
Glassnode.com,
CryptoQuant.com,
chart
from
TradingView.com
Go to Source
Author: Keshav Verma
