Company specializing in cryptocurrency market data analytics, CryptoQuant has released a new analysis indicating a resurgence in retail on-chain activity.
The volume of on-chain transactions below $10,000 is often used to gauge the participation of smaller investors, offering insights into market sentiment among non-institutional participants. This type of activity tends to be more reactive to short-term market sentiment and news when compared to underlying fundamentals, but it can offer valuable information on capital flows within the network.
According to CryptoQuant, retail demand grew by around 13% over the past thirty days, a level last observed in March, just before the latest historical price peak. Over the previous four months, small investor activity had declined while larger holders, or whales, continued to conduct transactions and absorb coins. The recent rise in Bitcoin’s price appears to be drawing small investors back into the market, marking a shift towards lower risk aversion, the firm noted.
BTC And ETH Breakout Above Major Resistance Levels Could Attract Retail Interest
Risk aversion has become a focal point for many observers in the cryptocurrency market over the recent time. Trends in global liquidity are contributing to a growing appetite for risk, and analysts expect this momentum to continue through the upcoming United States presidential election and beyond.
In a recent analysis, Singapore-based cryptocurrency trading firm QCP Capital highlighted that the prices of both BTC and ETH have not yet surpassed their July highs but are nearing major resistance levels of $70,000 and $2,800, respectively. A breakout above these thresholds could potentially generate considerable retail interest. With just two weeks until the US presidential elections and a strong performance in equities, market sentiment appears positive, as evidenced by a shift in risk reversals favoring call options across all tenors.
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