CryptoQuant: Bitcoin retail investor activity picked up in October

On October 23rd, according to data from CryptoQuant, retail investors' activity slowed down between June and late September, but has since started to recover in October. The institution stated in a report released on Tuesday, "Within the past 30 days, retail demand has grown by about 13%, showing a trend similar to when we were close to our last historical high in March." The report noted that the increase in retail demand for Bitcoin is happening in sync with institutional interest. Despite retail investors returning to the market, institutional investors have steadily increased their investments in Bitcoin this year. This is in stark contrast to the first quarter of 2024 when market demand was mainly driven by large investors. The current dynamic of retail and institutional investor demand is similar to previous Bitcoin market cycles, and the recent increase in retail activity may signal a similar pattern of optimism re-emerging.

To measure retail investor demand, CryptoQuant focuses on several key indicators. One of them is tracking the total amount of Bitcoin held by wallets that hold less than one Bitcoin. This total has increased from 1.734 million Bitcoin in mid-March to the current 1.752 million Bitcoin, an increase of 18,000 Bitcoin. Another indicator is the volume of on-chain transactions below $10,000, which reflects the activity of small investors and provides a reference for non-institutional investor market sentiment.