Emily Walker
Recent on-chain data indicates that retail investors in Bitcoin are losing enthusiasm, as evidenced by a notable decline in their trading volume over the past month.
Recent Decline in Bitcoin Retail Investor Volume
In a recent post on X, CryptoQuant analyst Maartunn discussed how the demand from retail investors has recently shifted significantly. This “Retail Investor Demand” metric tracks how engaged smaller investors are in the Bitcoin network.
Retail investors, typically engaging in smaller transactions, usually conduct trades that are less than $10,000. Thus, this volume reflects their specific activities on the network.
The Retail Investor Demand is determined by observing the 30-day volume fluctuations. The analyst shared a chart that highlights this trend over recent years.
The graph illustrates that the demand from retail investors soared during the bullish rally in late 2024. This surge reflects a broader public interest, leading to increased activity among these investors.
This trend aligns with typical market behavior, where potential profits drive increased participation among retail investors. However, this spike reached a remarkable peak of 31.7%.
After this peak, retail investment activity began to wane, coinciding with a broader downturn in the cryptocurrency market, resulting in a negative change over the following month.
Moving into 2025, the decline among retail investors has intensified, with current demand metrics showing a low of negative 21.7%.
This figure represents a significant 21.7% decrease in transaction activity over the past 30 days, marking the sharpest decline since mid-2021.
The drop in retail participation might not be entirely detrimental to Bitcoin, as similar negative metrics in 2021 coincided with a market bottom.
In related news, Ethereum, the second largest cryptocurrency, has witnessed substantial outflows from exchanges this past week, as reported by market intelligence platform IntoTheBlock.
Centralized exchanges reported outflows totaling $1.42 billion in Ethereum over the last week, suggesting that many investors may be accumulating their holdings.
Current BTC Price
Bitcoin’s price dipped close to $91,000 yesterday but has since rebounded, trading at approximately $93,800 today.