Bitcoin retail investor demand hits 52-month high as market momentum builds: CryptoQuant

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The Block2024/11/14 16:00

By:The Block

Quick Take Retail investor demand has surged to a multi-month high, fueled by renewed enthusiasm for memecoins, DeFi tokens, and bitcoin’s all-time highs, according to CryptoQuant. While bitcoin briefly topped $93,500, aggressive leverage in altcoin markets could impact volatility risks as funding rates soar.

Bitcoin retail investor demand hits 52-month high as market momentum builds: CryptoQuant image 0

Bitcoin’s retail investor activity has surged to a 52-month high, signaling a return of strong retail trading interest, according to CryptoQuant. Key metrics such as retail investor demand and funding rates indicate renewed enthusiasm fueled by surging altcoin markets and growing mainstream attention.

"It’s impossible to ignore that retail trading is fully back, with dogecoin surging, high funding rates, and a spike in Google searches for bitcoin, this can be observed as well in the retail investor demand change 30-day-moving-average," CryptoQuant analyst J.A. Maartunn said to The Block.

Bitcoin retail investor demand 30-day change has increased to a multi-month high. Image: CryptoQuant.

CryptoQuant data also shows retail interest extending beyond bitcoin . "Retail demand is also shifting towards other coins further down the risk curve," Maartunn said. The CryptoQuant analyst pointed to data that highlighted the top-gaining altcoins over the last 168 hours.

"Our data shows a retail demand targeting a mix of memecoins, DeFi projects, and major altcoins, and these categories appear to be the most popular among retail participants," he added.

Retail interest has shifted along the risk curve to memecoins and distinct DeFi tokens. Image: CryptoQuant

Bitcoin has posted a slight pullback since hitting a new all-time high of over $93,500 this week. Altcoin market enthusiasm has triggered a sharp rise in funding rates, with analysts at Ryze Labs warning that this aggressive leverage could amplify market volatility if trends suddenly reverse.

"Funding rates have surged, signaling a return of aggressive leverage, with many altcoin long positions incurring over 50% APY in funding," Ryze Labs analysts told The Block. "Retail interest has been heavily focused on memecoins, fueled by Robinhood and Coinbase's recent listings of PEPE and WIF."

YouHodler chief of markets Ruslan Lienkha has also observed this trend, citing a recent increase in leverage in altcoin long positions within the crypto market. "This trend typically heightens the risk of a potential long squeeze. Additionally, it could serve as an early indicator of an impending market correction and deleveraging," Lienkha told The Block.

Bitcoin's price has dipped slightly by 0.8% over the past 24 hours, trading at approximately $89,000 as of 3:00 p.m. ET, according to The Block’s Bitcoin Price Page .

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.

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