Bitcoin retail demand hits 3-year low

On-chain data indicates that retail investor demand for Bitcoin has fallen to a three-year low, a potential bearish signal for BTC (CRYPTO:BTC).  

According to a recent update from CryptoQuant founder and CEO Ki Young Ju on X, retail investor demand has sharply declined.  

Here, "retail investors" refers to the smallest market participants whose transactions are typically valued under $10,000.  

The decline is evident in the transfer volume data for these smaller transactions.  

The 30-day change in this transfer volume has recently plunged into negative territory, suggesting a significant reduction in retail investor activity.  

This drop marks the lowest level of transfer volume for retail investors in approximately three years, signaling waning interest from this group.  

Although Bitcoin's price has experienced recovery over the past week, it has not been sufficient to rekindle retail demand.  

The reduced transfer volume among retail investors points to a broader loss of enthusiasm, even as the BTC price hovers around $64,100—an 11% increase over the last seven days.  

Despite the downturn in transfer volume, retail investors have continued to buy Bitcoin.  

Analyst James Van Straten highlighted that this group has been acting with a strategy similar to smart money, purchasing during price dips and selling near market peaks.  

This pattern was notably observed during the post-FTX crash bear market, where retail investors accumulated Bitcoin at lower prices.  

As Bitcoin continues its price trajectory, it remains to be seen if retail demand will rebound or if the current trend will persist.  

The future movements of retail investor activity could offer insights into broader market sentiment and potential price direction.