On-chain data shows that bitcoin retail volume has increased sharply recently as the cryptocurrency has reached a new high.
bitcoin retail volume is up more than 15% in the last 30 days
As CryptoQuant author Axel Adler Jr explains in a new x.com/AxelAdlerJr/status/1854401052046463214″ target=”_blank” rel=”noopener nofollow”>mail At x, demand from retail investors has recently increased. Retail investors typically refer to the portion of the btc user base with the smallest holdings.
One way to measure the demand of these investors is through their trading volume. Given the small size of their holdings, these holders do not make very large transfers, so their volume can be determined solely by tracking the transfer data, which is valued at less than $10,000.
Below is the chart shared by the analyst, showing the trend in the 30-day change of retail investor transfer volume over the past few years.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/Bitcoin-Retail-Vol-Returns-15-as-BTC-sets-new-ATH.jpeg" alt="bitcoin Retail Demand” width=”2048″ height=”1152″/>
The value of the metric appears to have spiked in recent days | Source: x.com/AxelAdlerJr/status/1854401052046463214/photo/1" target="_blank" rel="noopener nofollow">@AxelAdlerJr on x
As shown in the chart, bitcoin retail transfer volume saw a negative change over the past 30 days, but has seen a turnaround with the recent rally in the asset's price. The indicator has now reached significant positive levels, suggesting that interest from this group has increased considerably in recent times.
It is not unusual for retail investors to be attracted to the network during a volatile period like the one btc has witnessed recently, as these holders tend to find such times exciting.
The chart shows that this cohort showed a similar burst of demand during the rebound in the first quarter of the year. Similar trends were also observed on multiple occasions in the 2021 bull run.
Historically, rallies that have failed to build up retail interest have generally not lasted too long, as the influx of investors tends to sustain such runs. From this perspective, the current rally appears certain, as retail volume has increased more than 15% over the past month.
Another indicator to measure demand related to bitcoin is the Coinbase Premium Index. This metric tracks the difference between bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair).
This indicator does not reflect demand from retail investors but from US institutional investors, who have a strong presence on Coinbase.
As CryptoQuant's head of research, Julio Moreno, says marked with anx.com/jjcmoreno/status/1854259820582343126″ target=”_blank” rel=”noopener nofollow”> mailbitcoin Coinbase Premium Index has recently spiked into the positive region.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/1731071261_720_Bitcoin-Retail-Vol-Returns-15-as-BTC-sets-new-ATH.jpeg" alt="bitcoin Premium Index Coinbase” width=”1600″ height=”900″/>
The trend in the btc Coinbase Premium Index over the past week | Source: x.com/jjcmoreno/status/1854259820582343126/photo/1" target="_blank" rel="noopener nofollow">@jjcmoreno on x
A positive index value suggests that btc is trading at a higher price on Coinbase compared to Binance, which in turn implies that US-based whales are showing demand for the cryptocurrency.
btc Price
bitcoin looks to explore another high as its price has risen back to the $75,900 mark.
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Looks like the price of the coin has seen a sharp increase recently | Source: BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
