Bitcoin Retail Investors' Holding Grows At Historically Slow Pace Despite Rally To $69K – Report

Following its bearish start to October, Bitcoin has since shifted momentum, rising as high as $69,000 in the last two weeks.

Bitcoin retail investors are displaying a surprising lack of enthusiasm for the market despite the cryptocurrency’s impressive price rally.

According to blockchain analytics firm CryptoQuant, retail investors’ holdings have risen by 18,000 BTC over the last four months. However, the pace of accumulation is notably slow compared to historical data.

Retail investors acquired a net 1,000 BTC in the last 30 days, while the rate of accumulation has been declining since May 2023. In contrast, whale investors’ holdings have grown by 173,000 BTC over the same period.

During periods of price gain, low retail investor activity can indicate decreased market liquidity or a lack of confidence in the asset’s ability to sustain its bullish trajectory. However, it can also have positive implications.

CryptoQuant reports that low retail activity includes these small investors holding onto their Bitcoin rather than selling.

According to the firm, Bitcoin transfer to exchange in January 2023 has decreased from a daily average of 2,700 BTC to 1,400 BTC in 2024. This suggests reduced selling pressure on the token.

Furthermore, transfer activity among retail investors is minimal, with transaction volume dropping to $326 million on September 21, the lowest level recorded since 2020.

While reduced transfer activity may indicate limited market volatility, CryptoQuant states that low retail activity has historically preceded significant price gains for Bitcoin

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