Everyday investors still seem reluctant to invest their money in Bitcoin (BTC). In fact, on-chain data suggests that retail interest in Bitcoin has now reached a three-year low. In that regard, there is still a long way to go before the long-awaited bull market actually takes off.
Demand for BTC plummets among retailers
Ki Young Ju, the founder of on-chain analytics firm CryptoQuant, noted on social media platform X yesterday that demand for the world’s largest crypto by retail investors is at its lowest point since July 2021.
Ju came to his conclusion by looking at the change in total transfer volume for BTC transactions under $10,000 over the past 30 days. He saw that this volume has plummeted by more than 15%.
It is remarkable that demand is now at the same level as July 2021. Back then, the ongoing bull market was interrupted by a sharp drop of more than 50% in May and June, from above $60,000 to around $30,000.
In 2021, many had given up hope that Bitcoin would rise to new heights. Although Bitcoin has not suffered a painful decline like it did three years ago, the months of consolidation have left many investors with no confidence in the arrival of a bull market.
Bitcoin bull market hasn’t started yet
Although the influence of retail investors on Bitcoin’s price movements is smaller than that of large institutional players, their importance is still highly valued.
Many analysts are convinced that the bull market for Bitcoin can only start once retail investor interest picks up again.
“The real bull run usually starts with huge buying volumes driven by retail investors,” CryptoQuant contributor Minkyu Woo explained, suggesting that an increase in retail investors typically improves market sentiment. “We haven’t seen this volume from retail investors yet,” he added.
Should Bitcoin’s price move back toward its March all-time high of nearly $74,000, retail investors will increasingly line up to buy the decentralized asset. For now, though, Bitcoin is still struggling with resistance around $65,000.
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Source: https://newsbit.nl/bitcoin-retailvraag-op-laagste-niveau-in-drie-jaar-bullmarkt-in-gevaar/
