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Bitcoin retail demand falls by 19% despite price surge near ATHs

Bitcoin retail demand falls by 19% despite price surge near ATHs

GrafaGrafa2025/01/24 12:10
By:Isaac Francis

Bitcoin (CRYPTO:BTC) is approaching its all-time high price levels, yet retail demand for the cryptocurrency has significantly decreased by 19.34% over the past month, according to a report from CryptoQuant analyst "caueconomy."

This decline indicates a cautious sentiment among smaller investors, despite notable price increases.

The report highlights that retail demand peaked in December but has since declined, which is unusual given Bitcoin's current price surge.

Typically, retail investors respond strongly to market dynamics, but this trend appears to have shifted.

The data reveals that while Bitcoin's price has risen to around $106,400, retail investor activity has not followed suit.

In fact, the Bitcoin Retail Investor Demand metric recently recorded a historic low of -22%, indicating that smaller investors are hesitant to engage in the current market rally.

This lack of retail enthusiasm contrasts sharply with previous bull runs, where spikes in demand from retail investors often accompanied significant price increases.

The current market structure remains healthy, with analysts suggesting that there is still room for growth despite the drop in retail demand.

Institutional players appear to be driving the price upward, which may indicate a shift in market dynamics away from reliance on retail participation.

The ongoing decline in retail activity could present opportunities for new entrants into the market, as analysts believe that such phases can lead to sustained upward trends.

Ultimately, the engagement of retail investors will be crucial in determining the sustainability of Bitcoin's growth trajectory moving forward.

"The current trend bucks historical patterns," noted by the CryptoQuant analyst, suggesting that a new phase may be emerging in Bitcoin's market behavior.

At the time of reporting, the Bitcoin (BTC) price was $104,932.

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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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