CryptoQuant Data Shows Rising Bitcoin Retail Activity After Months of Stagnation
After months of stagnation, new data indicates that Bitcoin retail activity is following the price run to all-time highs. On October 21, the on-chain analytics platform CryptoQuant revealed a 13% increase in transactions under $1,000 in one of its most recent Quicktake blog posts. Retail interest in Bitcoin has not yet shown any signs of recovery after plummeting sharply after the all-time highs for BTC/USD in March.
There are indications that change is on the horizon, even though there is still a lack of widespread interest outside of institutional circles, especially when measured by metrics like Google search statistics. Transaction volume numbers are crucial for Cauê Oliveira, a contributor to CryptoQuant.
In the last 30 days, retail demand grew by about 13%, highlighting a scenario that was only seen in March, when we were close to the last historical high. Note that in the last 4 months we have seen a decrease in the activity of these small investors, while whales maintained a high amount of transactions and absorption of coins.
Oliveira
Retail Bitcoin Transactions Grow 13% as Price Closes in on Key Resistance Levels
According to data, BTC/USD increased by almost 10% in the 30 days ending October 20. An additional graphic reveals similarities to the weeks before the March high, and transaction volumes up to $1,000 grew by 13% within the same time period.
This recent rise in bitcoin is causing small investors to return to trading, signaling the beginning of a pattern of lower risk aversion,
Oliveira
Many analysts of the cryptocurrency market are currently keeping an eye on the issue of risk aversion. Commentators predict that global liquidity trends will continue to improve through the US presidential election and beyond, as they raise broader risk appetites.
Both BTC and ETH have yet to clear July highs but are closing in on key 70k and 2800 resistance levels. A break above these levels is likely to attract massive retail attention. With the US elections just 15 days away and equities looking strong, the market is definitely optimistic as Risk Reversals have flipped in favour of Calls across all tenors.
QCP Capital
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