🔥🔥🔥 $BTC average change in retail demand falls to 5-month low, could a 75% rally be next?
Bitcoin's retail demand has declined over the past month, with some analysts suggesting it might signal an impending price surge similar to early 2024. Retail investor interest, defined by those with up to $10,000 in transfer volume, has dropped to its lowest in five months, a level last seen in January. This previous decline led to a 75% surge over two months.
CryptoQuant's Axel Adler reported a negative 17% average monthly change in retail demand over the past 30 days. A similar drop to -18% in January preceded Bitcoin’s rise from $40,000 to $70,000, following the approval of spot #BitcoinETFs in the U.S., which drove Bitcoin to a mid-March all-time high of $73,679.
Adler also noted a 31% demand drop over 17 days before May 24, with a shift attributed to rising interest in GameStop and #Ethereum due to initial spot Ether ETF approvals. Factors like the U.S. Consumer Price Index (CPI) also influence Bitcoin demand; a lower CPI can make Bitcoin more appealing as traditional savings yield less.
Markus Thielen of 10x Research indicated that the CPI must drop to 3.3% on June 12 for Bitcoin to reach new all-time highs. On June 11, Bitcoin fell below its November 2021 all-time high of $69,000, trading at $67,350, down 3.19% in 24 hours per CoinMarketCap. This decline led to $52.87 million in Bitcoin long positions being liquidated, though open interest remains above $35 billion per CoinGlass data.
Despite traders' hopes for a rebound above $70,000 after a June 8 drop, Bitcoin has yet to recover. Future traders appear pessimistic about a near-term recovery, with $2.14 billion in short positions hinging on the June 12 CPI results.
This is not investment advice.
Source - cointelegraph.com
