Bitcoin Retail Investors Increase Holdings by 18,000 BTC Amid Price Rally
After a bearish start to October, Bitcoin's price surged to $69,000 in the past two weeks. Despite this rally, retail investors remain cautious about market engagement. In its weekly crypto report, blockchain analytics firm CryptoQuant highlighted the low retail activity in the Bitcoin market.
Bitcoin Retail Investors’ Holdings Grow Slowly
CryptoQuant reported that retail investors' holdings increased by 18,000 BTC, valued at $1.2 billion, over four months, totaling 1.753 million BTC worth $112.7 billion. However, this growth is historically slow, with only a net acquisition of 1,000 BTC (approximately $66.31 million) in the last 30 days. The rate of accumulation has consistently declined since May 2023, when retail holdings rose by 27,000 BTC worth $1.79 billion.
In 2024, individual investors increased their investments by 30,000 BTC valued at $1.99 billion, compared to whale investors who accumulated 173,000 BTC worth $11.50 billion during the same period.
Low retail activity during price gains may indicate reduced market liquidity or lack of confidence in sustaining bullish trends. Conversely, this reluctance suggests small investors are holding onto their Bitcoin rather than selling. Daily average transfers to exchanges decreased from 2,700 BTC in January 2023 to 1,400 BTC in 2024, indicating reduced selling pressure.
Transaction volume among retail investors dropped to $326 million on September 21, the lowest since 2020. While this may signal limited volatility, historically, low retail activity has preceded significant Bitcoin price increases.
Bitcoin Price Overview
Currently, Bitcoin trades at $66,896 after a 1.11% decline over the past day, influenced by an alleged investigation into Tether and geopolitical conflicts. However, daily trading volume increased by 34.29%, reaching $42.10 billion.
