Network data shows that Bitcoin retail volume has surged recently as the cryptocurrency hit a modern high.
Bitcoin retail volume has increased by over 15% in the last 30 days
As CryptoQuant author Axel Adler Jr explains in a modern article post demand for X from retail investors has recently increased. Retail investors typically refer to the portion of the BTC user base that holds the smallest shares.
One way to gauge demand from these investors is through transaction volume. Given the compact size of their holdings, these holders do not make very immense transfers, so their volume can only be determined from data on transfers that are less than $10,000 in value.
Below is a chart provided by an analyst showing the trend of the 30-day change in the volume of retail investors’ transfers over the last few years.
The value of the metric appears to have spiked in recent days | Source: @AxelAdlerJr on X
As you can see from the chart, Bitcoin’s retail transfer volume had previously seen a 30-day negative change, but has made a turnaround amid the asset’s recent price surge. The indicator has now reached significantly positive levels, suggesting that interest in this group has recently increased rapidly.
Retail investors are attracted to the network during a volatile period like BTC has recently experienced, as cryptocurrency holders typically find such times invigorating.
The chart shows that this cohort showed a similar boost in demand during the first quarter of the year. Similar trends have also been observed multiple times during the 2021 bull run.
Historically, rallies that failed to attract retail attention usually did not last very long, as an influx of investors tended to sustain such declines. From this perspective, current growth seems safe and sound, as retail sales volume has increased by over 15% over the past month.
Another indicator for measuring Bitcoin demand is the Coinbase Premium Index. This metric tracks the difference between Bitcoin prices quoted 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 mighty presence on Coinbase.
As head of CryptoQuant research Julio Moreno pointed in X postthe Bitcoin Coinbase Premium Index has recently moved into positive territory.
The trend in the BTC Coinbase Premium Index over the past week | Source: @jjcmoreno on X
The positive index value suggests that BTC is trading on Coinbase at a higher price compared to Binance, which in turn means that US whales are showing demand for the cryptocurrency.
BTC price
Bitcoin is looking to make another high as its price has surged back to the $75,900 level.
Looks like the price of the coin has seen a keen boost recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
