Data from multiple on-chain metrics suggests that retail investor demand is finally returning following Bitcoin’s recent rally.
Bitcoin retail interest returns in explosive fashion
Bitcoin has seen a massive surge recently, getting closer to its dream target of $100,000 than many expected. During the cryptocurrency’s endless consolidation, investor interest in the asset had cooled, but with a rally like this, it’s only natural that it’s rewarded.
In the context of the current discussion, the segment that investors are focusing on is retail, which includes the smallest holders. The first indicator that suggests these investors are returning in the market is new addresses, which tracks the total number of BTC addresses that come online for the first time.
As market intelligence platform IntoTheBlock noted in a post on X, new Bitcoin addresses have increased dramatically recently, indicating a massive amount of address creation.
New addresses can rise when new investors join the network or when old investors who sold earlier return their assets. This metric can also rise when existing users create multiple wallets for privacy reasons.
However, when there is a surge in size like the recent one, the former is more likely to be the cause. Therefore, the latest trend in this indicator could mean a massive new adoption of cryptocurrencies.
As shown in the chart above, Bitcoin new addresses recently hit a high of 442,000, the highest daily value since March of this year. Large investors may also join the network now, but their numbers will certainly not be too high, so this adoption must come from retail investors.
Another indicator is the 30D change in retail investor demand, which provides us with information about the current activity of existing and new retail investors. This indicator has also spiked recently, as CryptoQuant community analyst Maartunn explained in the X post.
This metric tracks retail investor demand through trading volume. Since members of this cohort hold less significant balances, their transfers also tend to involve smaller values. Therefore, their trading volume can only be measured by data involving transfers with a value of less than $10,000.
As is evident from the chart, the 30-day change in retail investor trading volume has recently seen a large positive spike, reaching levels not seen in over four years.
“It can’t be ignored that with Dogecoin surging, high funding rates, and surging Google searches for Bitcoin, retail trading has fully returned,” the analysts noted.
BTC Price
Bitcoin has encountered some setbacks over the past day as its price has now dropped to the $88,300 level.
