Author: Ciaran Lyons, CoinTelegraph; Translated by: Baishui, Golden Finance
Average demand for Bitcoin from retail investors fell to a five-month low, reaching January levels, but surged 75% in the following two months.
According to data shared to X on June 10 by CryptoQuant author Axel Adler, the average monthly change in demand for Bitcoin from retail investors (those transferring up to $10,000) has fallen to -17% over the past 30 days.
Adler added that “there was a similar drop of 18%” in January, when Bitcoin rallied from $40,000 to $70,000 — when the price of Bitcoin surged after a spot Bitcoin exchange-traded fund (ETF) was approved in the United States, hitting an all-time high of $73,679 in mid-March.
“I also noticed that this group of people was very responsive to any market changes,” Adler said.
Source: Axel Adler Jr
In May, Adler used the same metric to show that demand fell 31% to -14.50% in the 17 days leading up to May 24. He noted that interest in GameStop and Ether has increased, likely due to the initial approval of a spot Ether ETF.
Analysts have previously said that changes in Bitcoin demand are caused by a variety of factors, including the U.S. Consumer Price Index (CPI), which tracks inflation.
When CPI falls, assets that are considered riskier, such as Bitcoin, become more attractive to investors because traditional savings and time deposits offer less returns as interest rates fall.
Markus Thielen, chief researcher at 10x Research, noted in May that the CPI would have to fall to 3.3% on June 12 (the date the Bureau of Labor Statistics releases its data) for Bitcoin to hit a new all-time high.
Bitcoin fell below $69,000 on June 11 — the asset’s all-time high in November 2021 — a level closely watched by traders. As of the time of publication, Bitcoin is trading at $67,350, down 3.19% over the past 24 hours, according to CoinMarketCap.
Bitcoin is currently trading at $67,350. Source: CoinMarketCap
The sudden drop has wiped out $52.87 million worth of Bitcoin long positions in the past day. Open interest remains above the closely watched $35 billion mark, according to CoinGlass data.
Although traders hoped that Bitcoin would quickly rebound above $70,000 after falling below that level on June 8, Bitcoin has yet to achieve that goal.
Although the CPI results are due on June 12, futures traders do not seem to believe that Bitcoin will rebound in the short term, and if Bitcoin does rebound, the $2.14 billion short position will be at risk.
