Bitcoin, Retail Investors Are Back...Individual Demand Jumps from -8.2% to +4.38%

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) individual investor demand has turned positive again, showing signs that small-scale investors who left the market after the sharp decline at the beginning of the year are re-entering.

Bitcoinist reported on May 13 (local time), citing an analysis by CryptoQuant contributor Axel Adler Jr, that the 30-day change rate of Bitcoin individual investor demand has recently re-entered the green zone. This indicator measures the extent of individual investor demand on the Bitcoin network, based on the transfer volume of transactions under $10,000.

The individual investor demand indicator fell into a deep negative range in March, showing a disinterest from small-scale investors. However, the indicator has steadily recovered since then, and the 30-day change rate, which once dropped to -8.2%, recently rebounded to +4.38%. This is interpreted as a sign of improved market sentiment among individual investors compared to a month ago.

However, individual investor participation has not fully returned. Adler Jr. pointed out that trading volume is still lower than February's levels. Bitcoinist stated that whether the 30-day change rate of individual investor demand will continue its recent trend, and whether small-scale investors will genuinely re-enter the Bitcoin market, will be key points to watch in the future.

The burden of losses for short-term holders has also decreased with the recent price recovery. Analyst Maartunn stated that after the recent Bitcoin rally, the proportion of short-term holder supply in a loss state has fallen to 38%. Short-term holders refer to investors who purchased Bitcoin within the last 155 days.

Bitcoinist explained that most of the short-term holder supply entered a loss zone during the recent downturn, but the situation improved after the price recovery. However, Bitcoin had fallen by 1% in the past week as of the time of writing, and its price movement was closer to a sideways trend. While the recovery in individual investor demand and the reduction in short-term holder losses occurred simultaneously, the market is still in the phase of confirming a full recovery in participation.

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