As a seasoned crypto investor with over a decade of experience navigating the volatile waters of digital currencies, I find the recent surge in small transactions for Bitcoin intriguing. CryptoQuant’s data suggesting a 13% increase in transactions under $1,000 mirrors my observations from the market run-up to all-time highs back in March. It’s reminiscent of the old saying, “As the retail investors go, so goes Bitcoin.
Data indicates that retail activity involving Bitcoin (BTC) is mirroring the upward trend towards record-high prices, following a period of standstill over several months.
On October 21st, the on-chain analysis platform CryptoQuant revealed that there was a 13% increase in small-value transactions (less than $1,000) in one of their recent blog posts titled Quicktake.
Bitcoin “small investors” show signs of life
The surge in public interest in buying Bitcoin hasn’t significantly returned since it plummeted drastically post-March, when the price of Bitcoin hit its peak against the US dollar.
As a researcher, I’ve noticed that while the broader public’s attention outside academic or institutional circles has yet to fully materialize, indicators suggest a shift may be on the horizon. For instance, analyzing Google search trends subtly hints at this potential transformation.
For CryptoQuant contributor Cauê Oliveira, transaction volume figures hold the key.
Over the past month, retail demand increased approximately 13%, mirroring a situation similar to March, which came very close to reaching our previous all-time 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.”
Over a span of about 30 days up until October 20th, the value of Bitcoin (BTC) in relation to the US Dollar increased by almost 10%. This information is derived from CryptoMoon Markets Pro and TradingView.
In the same timeframe, transactions valued at around $1,000 saw a 13% rise, and this trend seems reminiscent of the weeks leading up to the March peak as depicted by the accompanying graph.
Oliveira found that the recent surge in Bitcoin activity has led smaller traders back to the market, potentially indicating an emerging trend of reduced investment risk.
Coinbase premium lags despite $69,000 BTC price trip
Risk aversion is a theme currently on the radar for many a crypto market observer.
The growing patterns of global liquidity are fostering a greater willingness to take on risk, which experts predict will persist even up until and beyond the U.S. Presidential Elections.
In simpler terms, according to the trading firm QCP Capital, neither Bitcoin nor Ethereum has managed to surpass their July peaks yet, but they are approaching significant resistance points at around $70,000 for Bitcoin and $2,800 for Ethereum.
“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.”
US retail interest in Bitcoin, meanwhile, is still proving stubborn.
According to CryptoQuant’s analysis, the gap in prices for Bitcoin (BTC) between Coinbase and Binance is almost negligible, despite the fact that Bitcoin has recorded its highest weekly closing price since early June.
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2024-10-22 11:59