Bitcoin Retail Demand Levels Return to Neutral Zone at 0%
Bitcoin's price has decreased by 2.3% over the past week, moving further from its January all-time high of over $109,000. Despite this bearish trend, analysts report signs of renewed interest from retail investors.
Bitcoin Retail Demand Slowly Recovers
- The 30-day demand change for Bitcoin has returned to neutral at around 0%, up from a negative -21% late last year.
- This is the first significant increase in retail demand since 2021, historically linked to price rebounds.
- Past recoveries, such as in July 2024, preceded positive price movements after three months.
- If the current trend continues, it may lead to future price gains, albeit gradually.
Network Activity and Investor Sentiment on the Decline
- Network activity shows a decline in active Bitcoin wallets and transaction volumes for deposits and withdrawals.
- Accumulation by spot ETFs has slowed, indicating a cautious investor base; unspent transaction outputs (UTXOs) are decreasing, reminiscent of prior market corrections.
- Broader macroeconomic factors and geopolitical tensions are impacting investor sentiment, with no major policy changes or favorable regulations emerging.
- Market enthusiasm is dampened, requiring new catalysts for upward momentum.
