Bitcoin Retail Demand Rises 13% in 1 Month: Q4 2024 Rally?

Bitcoin (BTC) retail on-chain activity is rising after four months of decline.

Will Retail Participation Help Bitcoin?

On-chain analytics platform CryptoQuant found that BTC transactions under $10,000 are growing, indicating a market change from risk-averse to risk-on.

Tracking transactions under $10,000 indicates retail activity. Retail activity is typically influenced by market emotion and headlines, not fundamentals and long-term outlooks.

Retail demand for Bitcoin faltered following its March 2024 all-time high (ATH), according to the study. Retail demand has grown 13% in 30 days and might expand more.

BTC rose 7% from $63,142 on September 22 to $67,346 on October 22. BTC may rise in Q4 2024 due to growing retail on-chain activity and pricing.

After Iran's attack on Israel this month, BTC and other cryptocurrencies recovered quickly, indicating a return to risk-on behavior in the digital asset market.

Over the last four months, retail on-chain activity decreased, while institutional investors maintained “a high amount of transactions and absorption of coins.” The study partially states:

The current spike in bitcoin is encouraging small investors to trade again, indicating a shift toward lesser risk aversion.

Is Q4 2024 Rally Coming?

Bitcoin retail on-chain activity is positive, suggesting retail investors are again interested in the top digital currency. However, the US presidential elections may increase BTC price volatility.

Several crypto researchers and trading businesses believe the US presidential elections will determine a Q4 2024 boom.

Bitwise CIO Matt Hougan said “anything other than a Democratic sweep” would help BTC reach $80,000 in Q4 2024.

Bitcoin dominance, a crypto market share statistic, reached 58.9%, a cycle high. This is good for BTC's price, but more dominance might hurt altcoins. Q4 2024 may see a fresh BTC ATH but subdued altcoin returns.

Retail demand for digital assets may be geography-specific, not global.

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